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    QuadJacks News | Daily Gambling News Thursday February 16 2012

    Posted by Quad Jacks March 14, 2012

    Payroll tax cut agreement reached; no online poker. Antigua resurrects Black Friday dispute. Everleaf Gaming funds confirmed seized. The company that’s supposed to buy Epic Poker is doing okay.

    Payroll tax cut agreement reached; no online poker: Congressional leaders have reached an agreement on the renewal of the payroll tax cut deal, and no provision related to legalizing online poker is part of it. The omission of any Internet poker attachment to the deal was confirmed yesterday by David Saleh Rauf, POLITICO reporter writing for the Public Gaming Research Institute: “A senior Hill staffer confirmed to POLITICO on Wednesday that regulating Internet poker at the federal level will not be part of a tentative deal reached by congressional leaders to extend a payroll tax cut and unemployment benefits.”

    This is a considerable disappointment to the online poker community, which had just started to fantasize about an imminent federal wink to online gaming, due in great part to a recent report by The Daily Helmsman which claimed: “Wendell Moore, senior public policy advisor to a law firm that provides back-of-house operations for the Tennessee lottery, said that while lobbying in Washington, D.C. in meetings with opponents to the online poker act, he was told Senate Majority Leader Harry Reid (D-Nev.) plans to propose an online gaming amendment to the Senate’s unemployment payroll tax bill this month.”

    This turned out not to be the case. In fact, according to Rauf, a Reid spokesperson “brushed off the speculation as rumors spawned by folks on K Street.”

    According to the Poker Players Alliance, the community mustn’t take this letdown too seriously. PPA Director of Grassroots and External Affairs Drew Lesofski was convinced by Nevada lawmakers that the payroll tax bill was “probably not the correct vehicle” for online poker anyway. Rich Muny told PocketFives: “Which vehicle hasn’t been our focus. We haven’t been sitting back and looking at the best vehicle for Congress to use. We think that’s the job of legislators. We’re not proponents of one vehicle or another. We just want online poker to go forward.”
    Sources: CNN, Public Gaming Research Institute, The Daily Helmsman, PocketFives

    Antigua resurrects Black Friday dispute after Wire Act memo: A few days after the original shutdown of online poker sites in the United States on April 15, 2011, the government of Antigua and Barbuda openly condemned the U.S. government’s actions, on the basis that American prohibitionism on Internet gambling violated global trade laws as approved and overseen by the World Trade Organization. Internet gambling is Antigua’s second largest industry after tourism, with a number of online bookmakers and poker sites based and licensed therein.

    The Antiguans charged that it made no legal sense to forbid Internet poker, since gambling in the U.S. is allowed in casinos, and so is online betting on horse racing to some degree. Mark Mendel, a legal advisor to the Antiguan government stated back in April: “I don’t think there’s another country in the world that puts people in jail for engaging in trade that’s lawful under international law. It’s as if Antigua would put Americans in jail for selling pineapples.” Even the country’s finance minister, Harold Lovell, intervened, suggesting that the Department of Justice’s prosecution of Internet poker was driven by protectionism and “an illegal attempt to squelch competition.” “I am concerned that at this point in time United States authorities continue to prosecute non-domestic suppliers of remote gaming services in clear contravention of international law.” The Antiguan government appealed heavily to the World Trade Organization, which had already agreed with it in the past that American Internet gaming laws were kind of stupid.

    Yesterday, roughly ten months after the fact, the same Mr. Lovell, speaking on behalf of the Antiguan government, said that the circumstances are being reevaluated, especially in view of the Department of Justice’s recent clarification of the Wire Act as explicitly prohibiting only some forms of Internet gaming. Mr. Lovell called the December 23 DOJ Memo a “game changer” for Antigua. He elaborated in a statement: “Now that the entire basis for the United States objection to allowing our trade in remote gaming services has gone away, it is increasingly impossible to understand why the United States has not complied with [WTO's] decision(s). In the coming days, the [Antiguan] government will be consulting with appropriate officials and legal counsel to determine the best way forward for our people and industry. It is high-time that the United States do what it routinely expects from its own trading partners – comply with WTO law and rulings.”
    Sources: Reuters, Antigua Chronicle

    Everleaf Gaming funds confirmed seized: A thorough investigation by Diamond Flush Poker reveals additional information about the recent deactivation of Everleaf’s service to American, French and Maltese players. The new information reveals that the whole thing was not as easy as a “cease and desist” letter like previously thought. The focal point of the controversy is on Causash Establishment, one of the payment processors for Everleaf that is based in Liechtenstein, in charge of transferring funds from the gaming network to American bank accounts. These transfers attracted the attention of American law enforcement as early as February of 2009, when undercover agents of the U.S. Secret Service began depositing on the site, playing, cashing out, and observing where the money was coming from.

    According to DFP: “The probable cause to obtain the seizure warrants relied on charges of committing, aiding and abetting 18 U.S.Code 1960(a), Prohibition of unlicensed money transmitting businesses,18 U.S.Code 1084(a) Transmission of Wagering Information(The Wire Act), and 18 U.S.Code 1956(a)(1)(A)(i) and 1956(a)(1)(B)(i) Money Laundering.”

    A director of the Everleaf Gaming Network confirmed to Diamond Flush that the seizures did occur, but also cared to stress that players’ funds are safely segregated, and that business remains as usual for the remaining countries serviced by the network.
    Sources: Diamond Flush Poker

    The company that’s supposed to buy Epic Poker is doing okay: Pinnacle Entertainment, the Las Vegas-based gaming group which was recently rumored to be in advanced stages to take over the Epic Poker League, overcame some losses from previous quarters to post a net income of about $25 million for the fourth quarter of 2011. The company, which runs a number of casinos in the nation (though none in Las Vegas), credits the boost in performance to successes in its L’Auberge Lake Charles and Boomtown Bossier City properties in Louisiana, Belterra casino in Indiana, and River City and Lumiare Place in St. Louis, Missouri.

    Writing for the Las Vegas Review Journal, Howard Stutz adds that: “Pinnacle’s reduced its corporate overhead expenses by more than 37 percent in the fourth quarter as it cut costs at its Las Vegas headquarters and a service center. The company is in the process of selling the Boomtown Casino near Reno and is trying to sell land in Atlantic City.” JP Morgan gaming analyst Joe Greff is quoted: “Overall, results reflect continued improvement in driving incrementally profitable revenue growth and reductions in its operating expense structure.” There is no mention of the Epic Poker League of Federated Sports + Gaming.
    Sources: Las Vegas Review Journal, Wicked Chops Insider

    QuadJacks – Thursday, February 16, 2012

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