EGamingPulse - Online Casino

FBI pays virtual casino a visit.

info@egamingpulse.com (news manager) — Wed, 04 Apr 2007 00:00:00 -0700

American authorities have been extremely busy since the U.S. senate passed the Unlawful Internet Gambling Enforcement Act in October 2006.

The Department of Justice and FBI, with the help of law enforcement both domestic and from foreign nations have targeted the most transparent of online gambling companies along with the unlicensed and unaccountable side of the industry. CEOs of Publicly Traded Companies (PLCs) such as BetOnSports.com and SportingBet.com have been arrested or detained. Two former executives of payment processor NETeller were arrested and await hearings. Gaming PLCs fled the US market. Many non-traded payment processors, software providers, Sportsbooks and casinos followed the PLCs into a voluntary exile, all fearing possible arrest by the DOJ.

Now, the FBI is investigating one of the worlds largest virtual economies, to investigate online gambling within, err, online gaming. The Bureaus investigators recently visited Second Life at the invitation of Linden Labs, the games creator.

Second Life is an extremely popular online virtual world that boasts millions of registered users. It has a complex economy and its currency, the Linden dollar, is freely traded for US dollars on the Lindex, a virtual currency exchange. This last fact is what has the FBI very interested in that virtual worlds casinos. In fact, Second Life has many hundreds of casinos, private poker rooms, slot parlors and blackjack dens.

"If you're buying money on the Lindex and utilizing it for gambling purposes, Linden could have a much higher level of responsibility. If they would be found in violation, that's difficult to say, but I can see a much stronger case being made." said Sean Kane, a lawyer who has studied legal issues surrounding virtual worlds.

"We have invited the FBI several times to take a look around in Second Life and raise any concerns they would like, and we know of at least one instance that federal agents did look around in a virtual casino," said Ginsu Yoon, Linden Lab's VP of business affairs.

Yoon said Linden Labs asked for guidance on gambling activity within Second Life and await a clear indication from the US authorities.

The FBI and the US Attorney's Office has declined comment.

Time Magazine 'Person of the Year' Launches Online Poker Room

info@egamingpulse.com (news manager) — Sat, 03 Feb 2007 00:00:00 -0700

Time Magazine 'Person of the Year' Tila Tequila has partnered with Playtech to launch an online casino and poker room.

Tila Tequila gained popularity mainly through her MySpace page, which has brought over 54 million page views. In 2006 she was featured on the covers of Maxim and Rolling Stone Magazines.

Emphasis Services Limited is a constancy group that will handle day to day operations and marketing of the new gaming brands.

The online casino & poker room will be officially launched in early February, 2007.

Las Vegas Sands to launch Online Casino

info@egamingpulse.com (news manager) — Mon, 04 Dec 2006 00:00:00 -0700

The Las Vegas Sands Corp is the No. 1 US casino company by market value and it plans to launch a UK focused casino Web site. Working with Cantor Gaming, The Sands expects to open its casino gambling website in Q2 2007.The site will feature the company's Venetian, Sands, Palazzo and Paiza brands but will not take US gamblers. It is reported by the UK government that European online gamblers wager close to $6.9 billion a year, an average of around $2,200 each.

Las Vegas Sands Chief Operating Officer Bill Weidner said "This is another opportunity for our company to create greater awareness of our global brands and further establish our presence and interest in the UK market," Weidner went on to say that "As the Internet gaming landscape continues to evolve, this effort will put us in a strong position to evaluate and react to other potential opportunities."

The Sands is no the first Vegas brick casino to venture onto the Ethernet. MGM Mirages online casino Web site was launched in 2001. It was closed in 2003, with some analysts pointing to some questionable marketing techniques and its decision not to take US gamblers as its failing.

Online gambling landmark ruling in SA Court.

info@egamingpulse.com (news manager) — Wed, 29 Nov 2006 00:00:00 -0700

Johannesburg based daily The Citizen report that Online Gaming Operators and end users may face fines of up to R10 million (aprox.US$1.4 million) and 10 years in prison following a landmark ruling in the Pretoria High Court. At present the court ruling was applicable only to casino-style gambling, said Gauteng Gambling Board legal manager Edward Lalumbe. We have not ruled out the possibility of going after other operators, including those offering access to Lotto in other countries. South Africa does not issue licenses for online casinos, and it was this that finally brought the provincial gambling authority along with the National Gambling Board and the Minister of Trade and Industry to court.

Defendant Well Known Online Casino.
It was maintained that Swaziland-registered Piggs Peak Casino could not offer online gambling to punters in SA. This is because SA does not have the necessary legislation to issue online gambling licenses. A gambling operator offering online gambling needs to have a license issued for this purpose in SA, and even though the owners of the Swaziland casino have an Internet license, it is valid only for that country.
The courts decision confirms that Internet operators offering online gambling to South Africans, and players/punters taking part, are doing so illegally.
Internet service providers, financial service providers, TV stations and the print media were named in court as facilitating online gambling also deemed illegal by the decision.
Our overall motivation for taking the matter to court was it was facilitating illegal activity, Lalumbe said, adding law-enforcement agencies including the Asset Forfeiture Unit and financial institutions had been consulted prior to the decision to go to court.

Aussie online casino operator sheds staff

info@egamingpulse.com (news manager) — Thu, 09 Nov 2006 00:00:00 -0700

Lasseters Corporation Ltd announced that it has closed it's Brisbane customer service operation. Its client care will be handled at Alice Springs it's MIS Operations facility.

A source at the company said: "Redundancies have been offered effectively reducing our staff from 40 to 19."

In October, the company stated that "the Unlawful Internet Gambling Enforcement Act as signed into law by US President George W Bush would eliminate around half of the world's estimated $US10 billion online gaming industry." A downturn in the company's overall revenues, startup costs associated with their new sports book and added redundancy costs will cause a pre-loss of approximately $1.5 million for the year ending June 30, 2007.

"Impairment testing of the intangible assets may further impact the loss in the financial year," the company said.

PartyGaming to shed 80 more, this time in Gibraltar

info@egamingpulse.com (news manager) — Tue, 07 Nov 2006 00:00:00 -0700

Staff at the Gibraltar branch of the PartyGaming operation were yesterday told that 80 roles out of some 332 currently in place will go following the US decision to ban online gaming

The company has confirmed that they have identified 80 roles that will now be abolished although they expect to retain some of these employees through redeployment in new vacancies. John Shepherd the spokesman for the company in London said that the company had reviewed its operations in the wake of the 'illogical and unnecessary prohibition' introduced by the United States and that had tried to minimise the redundancies now likely to involve some 55 jobs. The company said that it was following all procedures required by Gibraltar law. Last week the company announced 800 redundancies in its branch in India but over the past three days had been able to find jobs for 320 of these through a programme of links with leading international companies with centres in India such as HSBC, Deloitte and CFC. LADBROKES/888

Meanwhile, shares in gaming group 888 Holdings surged yesterday as investors reacted to the possibility of a £470 million takeover by high street bookie Ladbrokes. The stock was up by more than 8% after Ladbrokes confirmed Sunday night that it was in the early stages of talks with 888. The statement by Ladbrokes followed earlier speculation that 888 was in merger talks with Party Poker rival PartyGaming. Last week, 888 admitted it was in discussions with other firms over a possible deal as the sector looked to recover from the ban on internet gambling in the United States. Although 888 refused to name who it was in talks with, it was widely speculated that a £1.6 billion merger with PartyGaming was a realistic option. But according to the Mail on Sunday, 888 founders and majority shareholders Avi and Aharon Shaked want to establish ties with a conventional gambling company rather than another online casino. Ladbrokes executives, including boss Chris Bell, were thought to be in Tel Aviv this weekend for talks with the Israeli brothers who currently own 51.2% of 888. It is thought that if a deal with Ladbrokes goes through they could become the largest private investors in the bookie, which is valued at £2.5 billion. John Anderson, who is chief executive of 888, is a former Ladbrokes executive and is said to have retained close ties with former colleagues.

The online gaming sector was rocked early last month when the US passed a controversial bill which effectively outlawed internet gambling. Shares in the sector crashed, although 888 fared better than most - down 25% - as it was not as heavily reliant on the US for business as rivals such as PartyGaming. And the fall in share price has made it attractive to Ladbrokes as the industry braces itself for a round of consolidation, particularly as big players look at rivals with a strong European or Asian presence. The statement from Ladbrokes did not mention a price for 888 Holdings, although experts believe it could be worth in the region of £470 million. The Daily Telegraph quoted one gaming analyst who said a bidding war could drive the company's value to around £540 million.

source : www.chronicle.gi

Online casinos 'used to launder cash'

info@egamingpulse.com (news manager) — Wed, 01 Nov 2006 00:00:00 -0700

Critics say laws that were meant to stop criminals abusing gaming sites are not working properly

ONLINE gaming sites have created a money-laundering arms race as criminals try to exploit internet casinos to hide stolen money, ministers have been told.

As representatives from 33 countries met in Ascot yesterday to discuss ways of curbing online gambling, the scale of the dangers posed by internet casinos and poker sites were outlined in a government-funded report.

Its research indicates that three quarters of people who use internet gambling sites were classified as problem or pathological gamblers, compared with just one in five of those who visit casinos.

The report for the Department for Culture, Media and Sport also highlighted the similarity between gambling sites and video games, which, it said, made them particularly dangerous for children. Free games that allow adolescents to learn how to play without betting money distorted their perception of reality.

The most significant revelation is that criminals are targeting betting sites to move tainted money and disguise its illegal origins.

This is an embarrassment for the Government because the gambling reforms of last year which legalised internet gaming in Britain were introduced to prevent gambling from being a source of crime and disorder, being associated with crime or disorder or being used to support crime.

The meeting devoted a session to the dangers of criminal activity and money laundering. According to research, criminals can deposit money under a false name and wager an amount before withdrawing it from their account, or open a remote gambling account to store funds until they can be transferred into a legitimate account, pretending that they are winnings.

Hugo Swire, the Shadow Culture Secretary, said: It is hard to see how the key aim of the legislation of preventing gambling from being a source of crime and disorder fits in with the admission in this government-funded report that online gambling is being used to fund criminal activity. A spokesman for the department said that the exploitation of internet gaming by criminals was one reason why international regulations were needed.

Ministers insisted that the effort to regulate the online gambling industry was not an attempt to grab tax revenue.

Last night the summit ended without agreement over minimum international standards for internet gambling. Ministers were hoping to secure a promise from representatives that they would not allow internet gambling to be a source of crime, that they would ensure it should be fair to the consumer and that it should protect children and the vulnerable. A government source denied that this amounted to failure.

We never expected to get everyone on board in a day and we are delighted that everyone is keen to work together in future. They are arguing over commas, and the final version will not be very different from todays draft.

Richard Caborn, the Sports Minister, who, along with Tessa Jowell, the Culture Secretary, was trying to secure agreement, said that an international working group would be set up. We now have in place a road map for that will lead to better regulated remote gambling across the world. Those present today agreed to co-operate further in a number of key areas to ensure that gambling remains fair, crime-free, and vulnerable people are protected.

We will follow this up with proposals for an expert working group representative of those countries present today. We will want this to involve wider international institutions, including Unesco and the global financial sector, to advise on the development of worldwide standards.

Ms Jowell said that there was an international appetite to agree a regulatory structure.

source : http://www.timesonline.co.uk

Ryanair strikes deal with online bingo firm

info@egamingpulse.com (news manager) — Wed, 01 Nov 2006 00:00:00 -0700

Ryanair said on Wednesday it had formed a gaming partnership with Internet bingo group Jackpotjoy.com, adding another new revenue stream as it seeks to boost cash flow from areas other than ticket sales.

Ryanair will allow passengers to play bingo on its website under the deal which will move into its second phase mid-2007 when the airline hopes to start offering online gambling on board planes.

"We might have the pilot calling out bingo numbers. That would get everyone's attention," Chief Executive Michael O'Leary told reporters.

The move is Ryanair's latest push to introduce paid inflight entertainment after it last year scrapped plans to introduce portable entertainment units which would have allowed passengers to watch movies and television shows.

Ryanair, which will take a cut of Jackpotjoy.com's revenues, did not disclose the terms of the deal. O'Leary said he expected to make "millions upon millions" from the deal but declined to give details.

In-flight sales and services such as hotel bookings and car hire are a key driver of growth for the group, which believes ancillary revenues will one day form such a big part of the business that passengers will effectively fly for free.

Such businesses generated 259.2 million euros (173.5 million pounds) in turnover in the year to the end of March 2006, which was 15.3 percent of Ryanair's total revenues of 1.69 billion euros. O'Leary said this was expected to increase to 20 percent in the next 5 years.

Ryanair said it would marry the gaming partnership with new technology which will allow passengers to use mobile phones onboard planes by mid-2007 under plans announced earlier this year.

Passengers would be able to access the gaming website using their mobile phones on BlackBerrys in-flight, O'Leary said. He said start-up costs for the venture were low.

O'Leary declined to comment on Ryanair's 1.48 billion euro takeover bid for Irish carrier Aer Lingus.

He also attacked calls to introduce taxes on airlines to help cut carbon emissions as "environmental claptrap".

"Taxing aviation won't have the slightest impact on its growth ... it certainly won't affect the growth of low-fares airlines," he said.

Shares in Ryanair were down 0.23 percent at 8.83 euros by 3:17 p.m., trading broadly in line with a slightly weaker Irish market.

source : www.reuters.com

Irish eyes look to multi-lingual online casinos

info@egamingpulse.com (news manager) — Wed, 25 Oct 2006 00:00:00 -0700

PADDY Power is considering the launch of a new casino in Ireland as well as the introduction of gaming websites in Italy, Spain and Poland, the company revealed yesterday.

The move into continental Europe comes as European governments come under pressure to open their gambling industries to foreign companies.

Dublin-based Paddy Power, which operates mainly in Ireland and the UK, is seeking potential new markets after starting a German-language website in April, chief executive officer Patrick Kennedy said.

"We are looking at the possibility of introducing other European-language websites," Mr Kennedy said. "The ones we've looked at in the last three or six months have been Spain and Poland."

The company is also considering moving into Italy and may have a presence there within three years, he said.

The European Union this month told France, Italy and Austria to open up gambling to foreign companies in a bid to boost competition in the 25-nation bloc.

Italy is already in the midst of opening up its gaming industry to private organisations by licensing more sports betting and horse racing shops and so-called 'remote gaming' by internet and telephone.

Licences

Paddy Power's plans will depend on the type of licences available in each country, Kennedy said. "Obviously in an ideal world we would love to offer poker games, casino, bingo and the sports book in as many of those geographies as we could."

Online gambling companies such as 888 Holdings plc and PartyGaming plc want to expand in Europe after laws were passed in the US this month aimed at shutting down internet gaming.

Paddy Power has never accepted bets from customers in the US.

The bookmaker, whose websites offer games, such as poker and blackjack, is considering opening its own casinos after the Irish government in July said it would regulate the industry.

The Government had earlier threatened to shut the country's casinos, which currently operate as private clubs to bypass a 50-year ban.

"I would be reasonably certain that we would try and get a licence, that we would be trying to get involved in some way," Kennedy said. Paddy Power would consider submitting a bid on its own or as part of a joint venture, he said.

The company, whose British betting shops are all within London's M25 ring road, may eventually open sites in another UK city, Kennedy said,though this is in the "early stages".

source : www.Unison.ie

Ritz Club closes gaming Web site

info@egamingpulse.com (news manager) — Tue, 26 Sep 2006 00:00:00 -0700

LONDON - Ritz Club, a gaming club at London's upmarket Ritz Hotel, said it had closed its online gaming site amid legal actions against the sector in Europe and the United States.

"In light of the current confusion and inconsistency in online gaming legislation worldwide, the owners of The Ritz Club London Online have, regretfully, decided to close the site to new customers with immediate effect," Ritz Club said on Tuesday in a statement on the Web site www.ritzclublondon.com.

A spokeswoman for Ritz Club in London said the site had been taken down on Friday and there were no longer any links from the club's main Web site to the online gaming site.

Shares across the sector have taken a series of knocks since July as some U.S. politicians seek to ban Internet gambling there and as U.S. and European prosecutors target executives from BETonSPORTS, Sportingbet and Bwin.com.

UK gaming stocks have lost a combined 2.4 billion pounds in value since the end of June as the industry continues to lose executives. On Monday, World Gaming said its chairman and a director had resigned.

source : http://today.reuters.co.uk/news/default.aspx

Targeting gambling on Net

info@egamingpulse.com (news manager) — Mon, 18 Sep 2006 00:00:00 -0700

Frist may have right idea but wrong way to go about it.

The Internet gambling industry headquartered almost entirely offshore is an estimated $10 billion a year business. And it's one in which some members of Congress would like to shut down, at least to its American customers.

This summer the House approved a sweeping Internet gambling measure, but the Senate hasn't followed suit. That's led Senate Majority Leader Bill Frist of Tennessee to try an end run.

His aides have been working to attach a prohibition on using credit cards to settle Internet gambling debts to a compromise Defense Department authorization bill.

Frist is on the right side of this issue in principle. For example, if a state such as Tennessee prohibits gambling, with exceptions only for state-run games such as the lottery, then companies really shouldn't be getting around state law by offering the games over the Internet. Additionally, the U.S. Justice Department has contended that online gambling is banned outright under the U.S. Wire Act of 1961.

Still, the issue of finding ways to enforce a prohibition against online gambling doesn't belong in a bill dealing with U.S. military operations. It should be debated separately on its merits, just as it was in the House.

In that House bill, the Unlawful Internet Gambling Enforcement Act, federal law prohibits processing financial transactions related to online gambling, a move that was strongly opposed by the banking industry. It also was criticized for containing loopholes like the one that allowed betting on horse racing to remain legal.

As with many issues these days, there are so many competing interests when it comes to Internet gambling, which is rapidly expanding to cell phone gambling as well.

Our federal lawmakers need to decide if they are going to take a substantive stand against this form of vice or simply turn a blind eye as people throw their money away on a fool's bet.

source : http://www.theleafchronicle.com

Continue reading "Targeting gambling on Net"

Debate swirling around Web's 'virtual casinos'

info@egamingpulse.com (news manager) — Fri, 01 Sep 2006 00:00:00 -0700

More than 2,000 Internet gambling Web sites allow anyone with an Internet connection to place bets around the clock.

"It's having a virtual casino in everyone's home, whether it's hosted by someone here or someone overseas," said David Robertson, spokesman with the National Coalition Against Legalized Gambling, based in Washington.

That reality hit San Antonio this week, when police raided professional poker player Richard Lee's Shavano Park house Tuesday night.

They referred to his residence as the "nerve center" of a suspected Internet gambling operation, and police confiscated a money-counting machine, five Lexus cars, plasma screen TVs and a large amount of cash.

But Lee, who recently won more than $2.8 million in the 2006 World Series of Poker in Las Vegas, hasn't been charged with a crime, said Sandy Gutierrez, spokeswoman with the San Antonio Police Department.

During a news conference Thursday on his front porch, Lee denied operating an Internet gambling Web site but said he was gambling online on partypoker.com when police arrived Tuesday night.

"It was a small tournament for which you could win a prize, and the prize was money," he said. "If it is (illegal), I wasn't aware of that. Some of my friends told me it was a really good site."

No one was available from partypoker.com to respond Thursday afternoon.

Internet gambling is a lucrative industry that generates an estimated $5 billion in revenue, according to a U.S. Government General Accountability Office report. And it's growing, thanks to more-robust Internet connections in U.S. homes.

Most of the operations have headquarters offshore, but some executives live in the U.S.

David Carruthers, chief executive officer of the British company Betonsports PLC, was arrested in July in Dallas as he changed planes. He's now under house arrest in St. Louis and his company is under indictment. On Thursday, a judge barred Betonsports from doing business in the U.S. for 30 days.

To further crack down on online gambling, the U.S. House on July 11 passed a bill that would expand U.S. laws banning Internet gambling and make it illegal to use credit cards or checks to place bets. The legislation is pending in the Senate.

For years, Congress has considered stronger federal legislation to beef up enforcement against Internet gambling, but lobbying efforts killed the bills, Robertson said.

Laws should lag behind actual Internet activities so as not to have a chilling effect on the marketplace and citizens' rights, said Henry H. Perritt Jr., professor of law and former dean of Chicago-Kent College of Law. He hopes Congress waits for prosecutors to bring cases to trial under existing gambling laws.

"I think it's appropriate to go slow about this," said Perritt who wrote "Law and the Information SuperHighway."

The National Coalition Against Legalized Gambling, however, hopes to see Congress crack down soon.

"I think if we get enough pressure on it we can get it passed," Robertson said. "There is a bunch of Internet gamblers lining up as a poker players and saying we are taking away their freedom."

The coalition contends gambling causes a host of social ills, including gambling addiction, suicide, bankruptcy and increased crime.

Offshore companies are creating more compelling and attractive gambling sites.

One of them, Betonsports, faces a 22-count federal indictment against company founder Gary Kaplan and CEO Carruthers. The company ran its U.S. Internet business from offices in Costa Rica and Antigua.

Carruthers and seven others pleaded not guilty July 31. He was freed on $1 million bond. Kaplan hasn't been taken into custody.

In 2003, the company's Web site, Betonsports.com, had 100,000 active players who placed 33 million wagers worth more than $1.6 billion, according to the indictment.

Not every gambling site should be treated the same, according to the San Francisco-based Poker Players Alliance.

The organization, which says it has 100,000 members nationwide, opposes any effort to ban Internet poker gambling. The alliance released a study in July estimating that more than $3 billion in federal and state revenue could be raised if this country taxed and regulated Internet poker.

"Poker is a skill game," said Michael Bolcerek, the alliance's president. "It's a different game than roulette or lotteries, and we think it should be treated differently."

Lee said he turned down promotional offers from online poker sites during last month's World Series of Poker because he made a promise to promote San Antonio.

During his news conference, Lee was wearing the same red long-sleeved T-shirt with "San Antonio" on the front that he wore during the poker tournament.

"I was proud as hell to be able to wear this T-shirt rather than take some money from people I don't even know," Lee said.

He said he did not consider his activities to be bookmaking.

"For you people in San Antonio who know me, I think you can tell I am a person of integrity," Lee said.

source : www.mysanantonio.com

Playtech wins UK betting contract

info@egamingpulse.com (news manager) — Sun, 13 Aug 2006 00:00:00 -0700

The company will supply software for the operation of two online casinos.
Playtech Cyprus Ltd. (AIM:PTEC), controlled by Teddi Sagi, announced last week that signed a contract to provide software to ukbetting plc (AIM: UKB) , which focuses on sports betting and is considered to be one of the largest online betting companies in the UK. Ukbetting has a market cap of $113 million.

Under the contract, Playtech will integrate its online casino software in two of ukbettings sites, ukbetting.com and totalbet.com. In its announcement, Playtech said that its proprietary integration package had been created to provide added-value to sportsbook operators and their customers. This latest migration brings the total number of Playtech licensees to 44, operating a total of 139 game sites.

Playtech did not disclose the size of the deal with ukbetting in its announcement, but in an interview with Reuters, CEO Avigur Zmora said that it was substantial. Playtechs revenue comes from three different sources: software licensing, royalties from profits of site operators, and technical support to other gaming sites.

source : www.globes.co.il

Arrests Won't Hurt Online Casinos

info@egamingpulse.com (news manager) — Tue, 18 Jul 2006 00:00:00 -0700

FORT WORTH, Texas - One day after federal officials announced indictments of operators of an offshore Internet gambling site, there were signs of how difficult it will be to prosecute the case.

A federal judge on Monday issued an order barring BetOnSports PLC from taking bets by U.S. residents. But on Tuesday the site appeared to be operating normally, offering bets on Major League baseball and season-opening college football games.

The company's founder, Gary Stephen Kaplan, the biggest target in the indictment, was somewhere in Costa Rica. He had nothing to say about the case, according to a spokesman.

Trading of the company's shares was suspended in London on Tuesday. They fell as much as 24 percent Monday following news that the company's chief executive, David Carruthers, had been arrested and closed down 17 percent at 122.50 pence ($2.24).

In the fiscal year ended Feb. 5, BetOnSports reported a 65 percent gain in operating profit on continuing operations to $20.1 million. The company said it handled $1.77 billion worth of bets for the year, up 25 percent.

On Monday, federal officials unsealed a 22-count indictment that charges 11 people and four companies with conspiracy, racketeering and wire fraud in taking sports bets from U.S. residents. Authorities said BetOnSports falsely claimed that Internet and phone wagering on sporting events was legal and licensed.

Five of the 11 individuals were arrested, including Carruthers, who remained in custody in Fort Worth pending a detention hearing on Friday. Carruthers was arrested Sunday at Dallas-Fort Worth International Airport as he waited for a connecting flight to Costa Rica.

The Justice Department is seeking the forfeiture of $4.5 billion, plus several cars, recreational vehicles and computers from the defendants. Prosecutors convinced a federal judge in St. Louis to order BetOnSports to stop accepting bets placed from within the United States.

A company spokesman, Kevin Smith, declined to say Tuesday whether any bets were being turned down.

"We are still in a holding pattern," Smith said. "Our attorneys are mulling over all the information and deciding the next legal step."

Legal experts and those who follow the online gambling industry said it was unclear what would happen if BetOnSports defies the judge's order to stop taking U.S. bets. Americans accounted for virtually all of the company's business until recently, when it began aggressively courting bettors in Asia.

If the company continues to take Americans' bets, federal officials could respond by pressuring the governments of the United Kingdom, where BetOnSports is incorporated, and Costa Rica, its major base of operations.

But such appeals might not work, especially in Costa Rica, which has become a haven for Caribbean online sports books and casinos in the past decade because of its light approach to regulation, experts said.

"There are probably at least 140 sports books operating down there. Those are a ton of jobs," said Sue Schneider, president of a suburban St. Louis firm that tracks the industry.

About 2,000 people work at BetOnSports' offices in San Jose, Costa Rica, according to a local newspaper.

Even if BetOnSports were shut down, there are plenty of sites to take its place. Some online sports books might stop taking bets from U.S. residents, but only if the United States is a small part of their business, Schneider predicted.

The indictment is likely to have even less effect on online casinos - those that take bets on poker or other games, but not on sporting events.

In the past decade, federal officials have prosecuted many operators of online sports books with U.S. ownership or operations because federal law prohibits using phone wires to place those bets, said Anthony N. Cabot, a Las Vegas lawyer who has represented traditional and online casinos.

In a celebrated case from 2000, prosecutors won a conviction against Jay Cohen, a U.S. citizen who ran an operation in Antigua that took sports bets from Americans over the Internet. He was sentenced to 21 months in prison.

But the wire law doesn't cover other types of casino betting, a federal appeals court in New Orleans ruled. That has left some doubt about whether prosecutors can shut down poker and other casino games that target American players, Cabot said.

And unless the operators set foot in the United States - as Carruthers and Cohen did - it's difficult to extradict them, Cabot said.

---

Associated Press writer Marianela Jimenez in San Jose, Costa Rica, contributed to this report.

source : http://www.phillyburbs.com/pb-dyn/news/95-07182006-685628.html

Crypto Logic renews with Inter Casino and Inter Poker, loses Ritz club

info@egamingpulse.com (news manager) — Sat, 15 Jul 2006 00:00:00 -0700

Cryptologic's share price gained ten percent this week when it was announced that the company
had extended a contract with a top online casino. The company's largest
customer, which operates several online casino sites, agreed to extend
the contract until June 2012. Overseas
Internet Gaming Entertainment is the owner and operator of two top
online casino sites - Inter Casino and Inter Poker. In other news, Ritz Club online casino decided not to extend its contract
with Cryptologic. This is not expected to have a major impact on the
software provider's financials as this agreament comprisd less than
2% of Cryptologic's revenue.

taken from www.cryptologic.com