Poker News

PartyGaming signs with Danske Spil to provide online gaming in Denmark

More positive news for online poker in Europe: Denmark's state-operated Danske Spil has signed a five-year agreement with PartyGaming, which will use its expertise and know-how to offer online gaming to the Danish market.

Denmark's relationship with gaming, particularly online gaming, has been patchy through the years. While live poker tournaments were considered perfectly legal, online poker was frowned upon by the Danish Supreme Court until very recently. The Danish gaming system, Danske Spil, enjoyed a lengthy virtual monopoly while all foreign gaming companies were forbidden to enter the Danish market for most of this decade, which sparked a number of disagreements with the European Commission regarding free trade agreements within the European Union.

In 2009, Denmark finally relented and put forth a draft legislation to partially open the Danish poker and casino market, which is expected to pass as law in 2011. Denmark further showed its commitment by allowing Danish people access to Hollywood Poker's online gaming facilities. Now in early 2010, the state's former monopoly, Danske Spil, is partnering with one of the world's largest online gaming providers to prepare for the upcoming competition.

The partnership between Danske Spil and PartyGaming has everything needed to make it successful: while the Danske Spil group is one of the largest in Europe, with over 500,000 registered customers and a reported turnover of €1.47 billion (about $2.13 billion) in 2008, PartyGaming bills itself as " the world’s leading listed online gaming company" thanks to its very successful brands that include PartyPoker, PartyCasino, and PartyBets.

Jim Ryan, Chief Executive Officer of PartyGaming, was understandably glad to announce this new partnership:

This is a landmark B2B deal for PartyGaming and validates our strategy to become a leading provider of B2B services to both corporates and governments around the world.  Danske Spil is widely recognised as one of Europe’s leading gambling businesses, one that is pre-eminent in the Danish market.  We are delighted that Danske Spil has recognised our expertise and high standards of business practice and we look forward to building a significant and profitable enterprise as soon as the newly regulated Danish online gaming market opens.

Ryan has every right to be delighted. Danske Spil researched the market for seven months to find a partner that met its exacting standards for security, ethics, and, of course, quality. Their choice of PartyGaming is an endorsement of the highest possible level of the company's expertise and capability.

H.C. Madsen, CEO of Danske Spil, said of this new partnership:

With some of the world’s leading products in online poker and casino as well as a large international customer base, PartyGaming is definitely a strong business partner for Danske Spil. Combining this with Danske Spil’s unique and strong position in the Danish market with more than 500,000 Danish online customers will guarantee that together we will deliver a highly attractive customer experience to players in Denmark.

One issue that remains to be clarified is how the notoriously strict Danish taxation system will treat new gaming providers as they enter the market. Taxes on poker winnings are remarkably high on Denmark. For example, 2008 World Series of Poker (WSOP) Main Event champion Peter Eastgate could only spend $2.5 million out of the $9.1 million he won with his bracelet, the rest going to the government's arks. Companies willing to offer online poker will have to jump through hoops to be on the government's exclusive no-tax list, meaning that players will not be taxed over their winnings on those sites. Hollywood Poker currently enjoys no-tax status and it is to be expected that Danske Spil's upcoming online poker venture will enjoy it too.

PartyGaming's shares (LSE: PRTY) last traded at 279.3 pence per share in London today.

Poker News in Brief: Jan. 4-10, 2010

The 2010 PokerStars Caribbean Adventure drew a record 1,529 players to generate a $14.8 million prize pool – the seventh biggest in poker history.

Plus, there was some poker news that happened outside of the Bahamas and we’re breaking it down for you below in our ongoing Poker News in Brief feature.

This week we’ll look at a new poker film coming to DVD, Pennsylvania legalizing live poker and table games, Belgium moving to nationalize online poker and Bodog making a big brag.

Legal Poker for Pennsylvania

Pennsylvania legalized poker, blackjack and other table games at Casinos this week in an attempt to generate extra revenue for the State.

Previously, casinos in Pennsylvania had been restricted to slot machines only.

It will be six months before games start being dealt in Pennsylvania, but the State stands to make millions in licensing fees.

Several neighboring states are taking notice and Indiana is considering allowing riverboat gambling in Lake Michigan and the Ohio River. Back in November, Ohio voters passed a law that will see four casinos constructed in four cities.

The Pennsylvania law change could have a potentially negative effect on neighboring Atlantic City if Pennsylvania residents opt to gamble closer to home.

Poker Film “Shark City” to See DVD Release

Indie poker flick Shark City is scheduled to be released on DVD on Feb. 16 though Morningstar Entertainment and Stardust Pictures.

The film stars Vivica A. Fox, Carlo Rota, Jefferson Brown and David J. Phillips and it centers around around the story of two friends who get mixed up with the daughter of a gangster. The two attempt to con a group of gangsters through a poker game and the plan goes awry.

High stakes poker, both live and online, is central to the theme of the film.

Shark City won the John Muir award at the Yosemite Film Festival.

To learn more go to the film’s website.

Belgium Attempts to “Nationalize” Online Poker

Belgium appears to be the latest country that is trying to restrict its citizens to only playing on local online poker rooms.

A recent story in Belgian newspaper Da Standaard claims the government has plans to demand Internet Service Providers block any foreign online poker sites.

This could potentially have huge ramifications for sites like PokerStars, Full Tilt or PartyPoker as they would have to set up regional offices in the country to continue operations.

The changes are scheduled to become law before the end of the year.

Meanwhile, the European Commission is reportedly not pleased with Belgium’s decision claiming it goes against the free trade agreement made by members of the European Union.

Despite the European Commission’s objections, Italy currently restricts its online poker market to rooms that have a presence in the country.

Study Shows Bodog Best Brand

Bodog may not have the most players, but according to a recent independent study it carries the strongest brand recognition.

The report was conducted by gaming consultant Josh Apiafi using Google to understand the brand strength of the top 10 online poker websites including PokerStars, William Hill, 888.com, Bet365, Betfair, bwin, Ladbrokes, Paddy Power, PartyPoker and Bodog.

“We had a hunch since I first rolled out the Bodog brand and business model that we are considered interesting,” said Bodog founder Calvin Ayre. “But that’s only part of the story – we also stand for having fun and that’s what all people want, especially ones that like to gamble."

The survey was conducted by looking at the number of Google alerts generated daily during December. Apiafi recorded every time a document was published that contained a mention of the brands listed above.

In the end, Bodog narrowly edged PokerStars by a score of 510 to 493.

Huge Growth for HeadsUp Entertainment

HeadsUp Entertainment, a poker media company out of Canada, posted its most recent quarterly statement this week and the company showed massive expansion in 2009.

The company sanctioned 362 events under its Canadian Poker Tour (CPT) brand this year, up from the 71 since it acquired the tour in 2008. HeadsUp Entertainment is aiming to host more than 560 events in 2010.

Also in 2009, HeadsUp Entertainment helped produce the CPT Finals in the Dominican Republic and Canadian Open Poker Championships in Calgary for television.  The Canadian Open Poker Championship drew big-name poker players like Gavin Smith, Jennifer Tilly and Huck Seed.

HeadsUp Entertainment also currently runs www.canadianpokertour.tv and Canadian Poker Magazine.

Visit PokerListings.com

Estonia Legalizes Online Gaming

Estonia, a small European country bordering with Russia, has recently legalized online gaming as a way to increase its tax income. The decision seems to have been aided by the success of the Baltic Poker Festival hosted by PokerStars.

For now, Estonian citizens will only be allowed to play on Estonian-based platforms such as Playtech's collaboration with the Olympic Casino Group, before opening up to international operators in 2011. This leaves the Playtech group in a very favorable position at the moment as the main provider of legal online gaming in the land. Playtech's Executive Manager, Mor Weizer, commented on this development: "We are truly glad of this opportunity to start our partnership with Olympic as the leading casino entertainment provider in Central and Eastern Europe."

Estonia is one of the smallest European Union (E.U.) countries, with only 1.33 million citizens. It borders north and west with the Gulf of Finland and Baltic Sea, respectively, as well as Latvia on the south and the Russian Federation on the east. Because of its bridging position between Europe and Russia, Estonia was invaded by the Soviet Union and Germany before regaining independence in 1991. At this point, Estonia started an aggressive and effective reform and growth program, which saw it become one of world's fastest-growing economies for several years. It joined the EU in May 2004 and was hoping to adopt the Euro as its currency by 2013. This is where online gambling comes in.

Estonia seemed a shoo-in for the Euro currency until the 2008-2009 economic crisis, which left it with the second most damaged economy of the EU, down by about 36%. A country must meet strict criteria to join the Eurozone and Estonia is taking pains to bounce back from the depression in time to join. The Estonian government hopes that taxing gaming operators will help revive its economy with the added income and influx of new jobs.

According to the Estonian Free Press, large international online gaming operators are currently showering Estonia with attention in the form of large advertising campaigns about upcoming services and there are rumors about millionaire investments planned for the country, which is seen as a gateway to the whole Baltic region's market.

Although online gambling remains a sore topic in the European Commission, where nations such as Germany and France block all online gaming in order to favor their state monopoly operators, more and more countries are opening up to its legalization and taxation. Estonia joins the likes of Belgium, Italy, the Netherlands, Poland and Sweden in creating legislation that allows online gambling, ensures it is taxed appropriately, and ensures its citizens are safeguarded against negative side effects like fraud, money laundering and underage gambling.

Belgium to Enact Laws Nationalizing Online Poker

Defying an order from the European Union (EU), Belgium has enacted laws that could have it become the next nation to nationalize online poker operations. It follows a similar stance towards online poker in Italy.

A recent article in De Standaard, one of Belgium’s newspapers, stated that the coming year would bring laws regarding the country’s stance towards online poker. The new regulations would purportedly nationalize the operations of online poker rooms by preventing outside companies, such as PartyPoker, PokerStars, and Full Tilt Poker, from being able to court Belgians. Online poker rooms would have to set up a separate operation that would be licensed by the Belgian government and located inside of the country, much like what Italy has done with its online poker operations.

This defies an order from the EU that was issued in June 2009. After receiving details on Belgium’s plans for online poker regulation from its government in March of last year, the EU decided that the plan violated several areas of the free trade treaty that all 27 member nations had signed. Some of the violations included requiring the operators of online gaming and poker sites to be based in Belgium, limitation of available licenses, criminal prosecution of customers who play on non-sanctioned sites, and restriction of services from outside nations. At the time, Belgium was also looking to use ISP blocking software to prohibit its citizens from playing on other licensed EU sites.

The EU has shown an inconsistency when it comes to nationalization plans. It allowed Italy to nationalize its online gaming operations, presumably for taxation and gaming regulatory purposes, but has disallowed other countries like Belgium and France. It also has been unable to come to an accord on the online gaming question among its own Member Nations, leading many countries to attempt to nationalize online poker for tax revenues in lean fiscal times. The government of Belgium also states that many of the online poker sites in existence have “ties to organized crime” and, as such, the need for the nationalization is necessary.

The online community is responding to this issue in many of the popular online forums. On TwoPlusTwo, a ten-page thread has developed with players are debating the issue. Part of the reason for its popularity is that one of the top online players in the game today, “Chiren80,” hails from Belgium and the proposed legislation would, in effect, remove him from international action with the threat of possible arrest.

Some of the discussion on TwoPlusTwo inaccurately says that the nationalized sites would still be part of the global network, much like different skins of poker rooms operate. This is not true; the nationalization of sites requires the online poker room to dedicate servers and operations to that nation alone, as PokerStars has done with its PokerStars.it site. With that operation, only Italians can play on the site and there are stringent rules that govern play.

The nationalization trend is, in some players’ minds, becoming a worrisome trend. “Nationalization of gambling environments and…the separation of player pools are real dangers for professional poker players in small European countries,” comments “Droschopf.” Another poster, “Sjors,” states, “I'm fine with regulating but don't cut off the world. Playing against people on the other side of the globe and having traffic around the clock is what makes online poker great.”

With the Belgian laws signed into effect, there is a great deal of pressure on the EU to formalize an agreement on online gaming and poker for the continent. Stay tuned to Poker News Daily for the latest.

Harrah’s Earns Seven Awards for Sustainability

The continued greening efforts by Harrah’s have paid off, as the resort company recently earned seven gold medals from Travelife, an organization that promotes sustainability in tourism.  Gold medals were doled out to several of Harrah’s Las Vegas properties, including the Rio, Caesars Palace, and Bill’s Gambling Saloon.

The medals are designed to reward properties that make an effort to minimize negative impact on the environment, take advantage of locally-based companies when selecting vendors, and make a concerted effort to hire locally based individuals to better the social lives of people within the community.

Travelife is an organization set up by the European Union through the Federation of Tour Operations to advise travelers on companies and hotels that make efforts towards greening their company.  Harrah’s was the only gambling-related company to receive accreditation for multiple Las Vegas resorts, taking home eight total medals.  The gold medals went to the Rio, Caesars Palace, Bill’s Gambling Saloon, Flamingo, Paris, Bally’s, and Harrah’s, while Imperial Palace received a silver medal.

Gary Loveman, the Chairman and Chief Executive Officer of Harrah’s, commented on the honor in an official press release from the company: “I’m proud that each of our resorts in Las Vegas achieved this distinction. We’ve invested heavily in sustainability at Harrah’s and made it a core business principle that drives business strategy and operations.”

According to numbers found in Harrah’s press release, the company has launched more than 110 conservation projects across its numerous properties.  These efforts have resulted in the reduction of 77,850 tons of carbon dioxide emissions.  Some of the projects include the installation of water filtration systems in Harrah’s restaurants to cut down on bottled water use and the implementation of a new Las Vegas laundry facility that severely cuts down on the number of gallons of water used each year.

Even the Harrah’s-owned World Series of Poker (WSOP) is taking part in sustainability efforts.  An eco-friendly poker table designed by EGM Green was put on display as part of the 2008 WSOP festivities.  The table was made of 98% sustainable materials and was awarded to that year’s Main Event Champion, Peter Eastgate.  The table was auctioned off for charity this past July at the Friends of Eastgate fundraiser.  Casinos that install the EGM table can earn Leadership in Energy and Environmental Design (LEED) credits.

Harrah’s has also received several other green honors over the past year, including an Environmental Quality Award, which is the highest level of recognition bestowed by the Environmental Protection Agency (EPA).  Harrah’s partnered with the EPA last year to take part in the Climate Leaders project and recently teamed up with the organization again for the Water Wise project.

In September, the casino conglomerate announced it would be joining forces with Dell, SC Johnson, Starbucks, and Wrigley to form “Team Earth.”  Run by Conservationists International, the team is designed to bring together corporations, non-profit organizations, scientists, and educators to discuss environmental issues.

Poker News in Brief: Oct. 5-11, 2009

Instead, U.S. player Aaron Gustavson stole the spotlight by winning EPT London as a three-week long schedule of major tournaments in England finally drew to a close.

Of course, there was plenty of poker news that happened outside of London this week and as part of our ongoing Poker News in Brief feature, we'll try to catch you up with it all.

This week we'll be looking at a new UltimateBet charity tournament, poker players in the buff and France possibly opening up its online gambling market.

UltimateBet introduces Starlight Poker Challenge

Annie Duke, Phil Hellmuth and UltimateBet are once again showing their charitable side by hosting the Starlight Poker Challenge in Montreal, Nov. 14-18.

The event will offer a guaranteed first-place prize of $100,000, which is reportedly the most ever offered by a charity poker tournament in Canada.

Proceeds will be going to the Starlight Children's Foundation Canada, which is part of an international non-profit organization dedicated to assisting seriously ill children and their families.

The event will feature a WSOP-style structure with several celebrities set to play, including Hellmuth and Duke.

For more information check out the event's website here.

OktoberFest Returns to Hustler Casino

Hustler Casino in L.A. is celebrating the changing of the seasons with the return of its Oktoberfest Fall Classic Tournament.

This time around the casino will be offering a deep stack series with over $300,000 in guarantees. The 23-day tournament series will begin Oct. 15 and run until Nov. 2.

The centerpiece of the tournament will be the $225 buy-in Liz Flynt Poker Classic, which takes place Oct. 24-26 with a $100,000 guarantee.

Players will be treated to complimentary champagne, buffet and a visit from the Hustler Honeys and Hustler Hunks.

Click here for the complete schedule.

Half-naked poker pros in ESPN The Magazine

Poker players are generally not known for their fantastic physiques, so it came as a surprise to many that four poker players were featured in a photo in this month's "Body" issue of ESPN The Magazine.

The photo, which appears to be somewhat tongue-in-cheek, features Daniel Negreanu, Jennifer Harman, Phil Hellmuth and Scotty Nguyen sitting topless at a poker table.

The Body issue of ESPN The Magazine is meant to highlight some of world's most impressive figures and it features star athletes like Serena Williams, Dwight Howard and Zdeno Chara in varying degrees of undress.

The issue is currently available at newsstands around the world.

French bill to open online gambling market?

It appears the French-government's monopoly on online gambling is at an end.

According to Reuters reports out of Paris, a French bill that would end the state monopoly went before discussion on Wednesday.

Budget Minister Eric Woerth told Parliament he thought they had found middle-ground that would be an efficient way of controlling the market and ending the reign of numerous illegal sites.

France had been feeling pressure from the European Union and private operators to open up their market, which is worth billions.

The new legislation would see private firms obtain permits from a newly created regulator. These firms would then be able to run their own gambling sites.

Visit PokerListings.com

Denmark Upholds Lower Court Ruling, Taxes Online Poker Winnings

Denmark, home to reigning World Series of Poker (WSOP) Main Event Champion Peter Eastgate, is notorious for having one of the most heavy-handed taxation codes of any country in the European Union. Eastgate, who took down $9.1 million when he captured the WSOP Championship Event bracelet last November, was taxed at a 45% rate for the first $4 million he earned and at 75% for the remainder of the money, leaving the youngest WSOP Main Event champion with an estimated $2.5 million. Now, the long arm of the Danish tax police has taken down another player.

The Danish Supreme Court ruled that a 35 year-old unemployed man, who allegedly had been earning a living as an online poker player, would have to be taxed as a “professional gambler” and subjected to a similar tax rate as Eastgate. Over the past year, the Danish man in question, who has not been identified in court documents, allegedly earned approximately €26,000 from playing at several online poker rooms. Although the Supreme Court refused to enforce a DKK5000 fine issued by a lower court, the resulting tax bill amounts to €11,700 for the unemployed poker player.

The case is a highlight of the schizophrenic nature of Denmark when it comes to the issue of poker, be it online or live, and its treatment of players. According to the Danish press, a poker organizer was allowed to organize tournaments after the Supreme Court determined that he wasn’t violating any existing laws on the Danish books. They did state, however, that the rule applied to live games and not the online version, which Denmark has been vigilant against since earlier this decade.

As the online gaming world began to take form in 2002, Denmark was one of the first countries to introduce a state-sponsored gaming system. Known as Danske Spil (similar to Sweden’s Svenska Spel), the state owned and operated casino and poker room prohibited outside companies, such as PartyPoker, 888 Pacific Poker, PokerStars, and Full Tilt Poker, from freely competing for the Danish gaming market. For most of this decade, Denmark has been in a battle against the European Union over potential violations of free trade agreements.

In a move that shocked many, Denmark decided in 2008 that it would open its doors to outside gaming vendors and put in place a free-trade online gaming practice within the next two years. Denmark has demonstrated its commitment to this goal by recently opening up Hollywood Poker to access by Danish citizens. In addition to allowing Danes to play on the site, the Danish government has listed Hollywood Poker as a no-tax website. This is an important part of the addition to Denmark’s accessible list, as the Danish tax authority has a very exclusive set of poker rooms where players can be assured that their winnings will not be taxed.

Bodog Network Launched Featuring Former Ongame Executive

Former Ongame Network CEO Patrik Selin is leading the launch of the Bodog Network, whose player base consists of customers of Bodog Europe, the Morris Mohawk Gaming Group, and Haydock Entertainment.

The newly forged network plans to incorporate non-Bodog domains starting in 2010. A gaming license for the European Union will also be unveiled next year. Selin commented in a press release distributed by Bodog, “I intend to build one of the largest and most reputable poker networks in the world. We are building a model that is founded on security and integrity, and Bodog Network partners will never need to disclose or put their customer databases at risk. The initial discussions I’ve had regarding potential candidate partners have been overwhelmingly positive.”

The news comes on the heels of the launch of Bodog.ca, which serves as the popular online poker room’s Canadian-facing portal. Bodog Europe holds the rights to market the site to the Canadian market. Founder Calvin Ayre commented on the fast-paced growth of Bodog, which has seen its market share slide over the past year: “I am extremely excited about this new licensee of BodogBrand.com - Bodog Network is the first business to business enterprise to license the brand and the fit simply couldn’t be better. Patrik Selin’s very detailed business plan and proposal were very compelling, and after building Ongame into a network powerhouse under his leadership, his abilities and credibility are unquestionable.”

Selin was at the helm when bwin acquired the Ongame Network back in 2006. He has also been successful on the poker felts, turning in a runner-up performance in 2007 in a £2,500 buy-in tournament held during the National Poker League in London for £20,000. He finished in the winner’s circle in the Ritz Club Poker Tournament, which was also held in London, for £22,000 in 2006. Selin finished 500th in the 2006 World Series of Poker (WSOP) Main Event, banking $26,000, albeit a far cry from the $12 million pocketed by eventual winner Jamie Gold.

Upon bwin’s acquisition of Ongame in 2006, Selin served as the President and CEO of GNUF and Betway. BodogBrand.com is based in Antigua and is the licensing arm for Bodog across the world. Bodog ranks as the 15th largest site/network globally according to PokerScout.com, boasting a seven-day running average of 810 real money ring game players. During its peak hours, which occur in the evening across North America, nearly double that total can be found battling it out on its virtual cash game tables. Its traffic is comparable with that found on PKR.

Bodog is the fifth largest site to accept players from the United States, trailing only PokerStars, Full Tilt Poker, CEREUS (Ultimate Bet and Absolute Poker), and the family of rooms that make up the Cake Poker Network. Year over year, Bodog’s traffic is off by 8% according to PokerScout.com, while that found on Full Tilt Poker and PokerStars is up 110% and 56%, respectively.

Bodog plans to unleash a “much-anticipated and unique solution to the rakeback challenge” this week at an event in Copenhagen, according to its release, but did not provide any further details. Its family of pros consists of David Williams, Evelyn Ng, online poker staple Justin “ZeeJustin” Bonomo, and “Survivor: China” castaway Jean-Robert Bellande, who recently re-upped his deal.

Bodog recently announced that players would receive double poker points if more than 2,000 were earned in a calendar month. Bonus points are placed in a customer’s account at the end of each month and can then be exchanged for cash or used as buy-ins to designated tournaments. Points are earned in cash games depending on the rake taken from each pot and in tournaments at a rate of three points per $1 of tournament fees.

European Union Rules In Favor Of Portugal Gaming Monopoly Over bwin

In what is a startling change from previous decisions that have been handed down by their judiciary, the European Union’s Court of Justice ruled against online gaming operator bwin in a suit the organization had brought before the Court.

The original challenge from bwin focused on the nation of Portugal and its monopolization of the online gaming industry. The Portuguese soccer league had signed a sponsorship deal with bwin that allowed the online gaming giant to advertise to fans who visited the website of the league. The national Portuguese state betting monopoly, operated by the national charity Santa Casa, objected to the deal and ordered the league to remove the bwin affiliation, which drew the charges by bwin and the soccer league in the Court of Justice.

Instead of finding on the side of the online gaming company and the soccer league - as has been the case in many proceedings in the past - the Court of Justice found that the government of Portugal and the betting company Santa Casa had the right to shut down the deal between bwin and the Portuguese soccer league. Details of the decision, issued on Tuesday, demonstrated that there is a fine line when it comes to these decisions across the borders of the European Union.

In an announcement of the decision, the Court of Justice stated, “Member States are free to set the objectives of their policy on betting and gambling and, where appropriate, to define in detail the level of protection sought. The fight against crime may constitute an overriding reason in the public interest that is capable of justifying restrictions in respect of operators authorized to offer services in the games-of-chance sector.”

What perhaps is the key reasoning for the decision from the Court of Justice is that the business arrangement between bwin and the Portuguese soccer league could lead to improprieties on the pitch. “The possibility cannot be ruled out that an operator which sponsors some of the sporting competitions on which it accepts bets and some of the teams taking part in those competitions may be in a position to influence their outcome directly or indirectly, and thus increase its profits.”

The European Union has had a tremendously difficult time when it comes to decisions regarding online gaming across its Member State borders. While some have taken the approach of Portugal and started government sponsored gaming sites, which prevent outside companies from entering into their monopolized gaming arenas, others have taken a different tactic and embraced the regulation and taxation of the industry, such as England. In many cases in the past, the European Union’s myriad of Courts and committees has made decisions that sided with the gaming industry and forced nations to open up their borders to outside companies. In the past year, however, there has been a change to some of the policies that the EU tries to enforce.

In March of this year, the European Union admitted that they were unable to come to a comprehensive agreement regarding the streamlining of access to internet gaming across the continent. This has opened the doors to Member States of the EU to test how far a government run gaming option can push the EU’s free trade policies, with Italy’s online gaming market - which allows outside companies to participate if they adhere to severe conditions - as the primary example. While we may think the United States has all the problems with online gaming, the European Union is also demonstrating that they have few answers to the questions either.

888 Holdings’ Poker Revenues Down 35% in First Half of 2009

The parent company of online poker room 888 Pacific Poker, 888 Holdings, is the latest online gambling business to release the results of their mid-year financial report.  Like many other businesses within the industry, 888.holdings saw significant declines in their earnings and revenues for both their online casino and poker room from 2008 to 2009.

The report, issued by 888 Holdings on August 27th, documented a 13% decrease in overall revenue, down to $117.9 million midway from 2009 compared to $135.4 million for the same period in 2008.  Casino revenue was down 20% from $69.8 million last year to $55.9 this year, but it was 888 Pacific Poker that saw the biggest drop in numbers.  The online poker room saw revenue fall a full 35% in 2009, dropping from $40.2 million in 2008 to just $26.2 million in the period from January to June of this year.  A statement released concurrently with the report attributed the decline to currency movements and the overall economic downturn, two issues numerous businesses within and without of the gambling industry have become intimately familiar with over the past several months.

While 888’s business to consumer ventures are struggling so far this year, the company saw massive gains in their business to business dealings.  The introduction of a new dedicated business to business company operating under the name Dragonfish has worked out well for 888 Holdings so far.  The official site for Dragonfish claims the site offers, “total gaming service,” and has brokered several major deals so far this year.  Just a few of the big business to business deals recently conducted through Dragonfish include an extensive deal with the Racing Post to develop an online casino and sports book, the development of casinos and poker rooms in the Balkans and partnering with several small online bingo companies.

The revenue for 888 Holding’s business to business dealings were up an impressive 42%, ballooning from $17 million in 2008 to $24.3 million in the first half of this year.  The performance of Dragonfish and a substantial revenue upswing for 888 Holdings’ emergent business offerings helped to temper their losses in their poker and casino businesses.

Chief Executive Officer of 888 Holdings, Gigi Levy, offered his own opinions on the company’s performance during the first half of 2009 in an official press release.  “The first six months of trading for 888 in 2009 have demonstrated the strength of the combined business model that comprises a world class B2C operator and an innovative and comprehensive B2B service provider,” stated Levy.  “While consumer sentiment is still weak and currencies remain volatile, we are trading solidly.”

The report also highlighted some of the recent developments with Pacific Poker over the past six months.  Most notably, the site introduced a new version of their poker client with 25 new features and upgraded the overall design of the site.  Some of 888’s other poker-related projects included the launch of pub poker leagues in the UK and Australia and the launch of a new poker reality show called “Poker Ashes”.  The show pits online qualifiers from 888 Pacific Poker against top rugby players from the UK and Australia like Shane Warne.

The statement from 888 Holdings also looked towards the future of the online poker market, addressing the pending legislation to regulate and tax online poker in the United States.  The company also mentioned the ongoing World Trade Organization as to whether or not the United States discriminating against European gambling companies.  As of now, the European Union and the US have not reached a settlement regarding the issue, but the company cited the case as something it is going to be closely following in the coming months.

Italian Poker Players Shuttled From Regular PokerStars To Italian Version

After changes in their country’s online gaming laws went into effect on Monday, Italian poker players woke up to find that they could not play on the international version of PokerStars, leaving many in a state of confusion as to what forced this change.

Italian online gaming regulations have constantly been changing since the middle of this decade. Back in 2006, the government enacted laws that ordered Italian Internet Service Providers (ISPs) to block all access by its citizens from gaming outlets located outside of the country. The Italian government determined that approximately 600 outlets fell into that category and, for some time, the only action that Italians could participate in was through the state-run companies. After the European Union threatened sizeable fines and sanctions, the Italian government backed off the regulation and dropped the partial ban, allowing for open competition from all of the world‘s online poker rooms, casinos and sports books.

Over the last couple of years, Italy has been in discussions with the EU as to what their online gaming laws could and couldn’t do. In the meantime, PokerStars continued to operate in Italy, started a dedicated site for Italian players and even created the Italian Poker Tour, which kicked off its inaugural tournament in June of this year but has yet to announce a second date. After a critical decision made by the EU in February, which passed under the radar of most in the online gaming industry, the recent changes for Italian poker players were put into effect.

Back on February 20th, the European Union agreed to changes to Italy’s online gaming regulations that effectively altered where and how Italians can play poker online. The changes that were requested by Italy’s State Monopolies Autonomous Administration (AAMS), the governmental agency that regulates the Italian online gaming industry, were quite odd but were eventually accepted by the EU. These changes included such idiosyncrasies as only tournament play being permitted; sites operating in Italy can only accept Italian taxpayers as players; the operating site’s servers must be located in Italy; and every single tournament must be pre-approved in real-time by the AAMS.

In addition to these regulations, there are also “time of play” qualifiers, which monitor how long a player has been on the site and will restrict players from participating if they have been playing too long, and no cash games on the Italian-facing sites. These as well as the other regulations were implemented on July 27th.

PokerStars has attempted to explain the changeover to the affected players, stating that they are trying to protect themselves from prosecution in Italy. In an e-mail message from the site, a spokesman told Poker News Daily, “We have no choice in this matter. The law that was passed recently by the Italian Parliament has made it very clear that offering real money online poker games to Italian residents can only be done by the sites that hold an AAMS license, like our PokerStars.it site, and the operators that breach this provision are committing a criminal offense. Note that this new law has been submitted for approval to the European Union, and the approval was granted.”

“Furthermore”, the spokesman continued, “the Italian Government has directly requested PokerStars to stop providing services to Italian customers on its “.com” site after the new law comes into effect on the 29th of July 2009, and we have agreed to comply with this request as required by law.”

“Starting from the 27th of July 2009, Italian players will not be able to play at PokerStars.com tables any longer, but they will be able to either transfer the assets to PokerStars.it or convert their PokerStars.com account into a PokerStars.it account if they do not have one already”, he concluded.

It is possible that the European Union allowed the changes to Italy’s online gaming laws to promote the autonomy that Member Nations have as a part of the EU. It is also possible that the EU’s own inability to enact EU-wide regulation of the online gaming industry had an impact on the February decision. Regardless of why the new gaming laws are in place in Italy, PokerStars is attempting to be a responsible company in complying with the new regulations.

The change will have an effect across many different aspects of the online world. Several popular Italian professionals such as Dario Minieri, Luca Pagano and others will not be able to participate in the international online scene unless they are outside of their home nation. After the changes in the Russian poker community, the adjustments to the Italian online scene and the continued battle in the United States, poker is in a state of flux around the globe.

EPT: Goodbye Moscow, hello Kiev

The Moscow leg of the European Poker Tour, scheduled to kick the tour's sixth season off in August, was put in jeopardy when the Russian Ministry of Youth, Sport and Tourism passed an order July 20 removing poker's status as a sport, effectively banishing the game to the country's four newly designated gambling zones, all outside the Russian capital.

A release from PokerStars Friday now claims the event has been cancelled because the EPT's ability to run the event was placed in doubt.

In its place, the EPT will open season six in Kiev, Ukraine August 18-23 with the "EPT Kiev Sports Poker Championship" featuring a €5,000 Main Event.

The Kiev Sports Palace will play host to the event in the heart of the Ukrainian capital.

PokerStars players who have already qualified for the Moscow event can have their packages converted to EPT Kiev, take a credit for a future event, or receive the cash equivalent.

The Ukraine does not require visas for citizens of the European Union, United States or Canada when travelling for less than 90 days.

"We appreciate the opportunity to bring the EPT to beautiful and historic Kiev and look forward to exploring the sights, sounds and flavors of the rich Ukrainian culture," the release states.

Visit PokerListings.com

United States, European Union to Resume Negotiations over Online Gambling

Incoming US Trade Representative Ron Kirk and European Union Trade Commissioner Catherine Ashton met last week in Washington D.C., later...

European Commission Rejects Belgium’s Online Gaming Nationalization Plan

After receiving the proposed legislation of online gaming that the nation of Belgium planned to enact, the European Commission yesterday rejected their plan due to language in the proposed laws that appears to be a nationalization plan rather than acceptable regulation and legislation.

According to the European Gaming and Betting Association (EBGA), the European Commission was correct in their decision to prohibit Belgium from putting the new laws into effect. The Belgian plan, which was sent to the EC as well as the other Member Nations – which comprise much of the European continent – on March 27th, looked to put into place laws which restricted the online gaming and betting market to operators solely established in Belgium. This is a violation of the European Union treaty that allows for free trade practices between its Member Nations.

Several areas of the proposed Belgian laws were pointed out by the European Commission to be in violation. They included such language as required the operators of online gaming and poker sites to be based in Belgium, limitation of available licenses, criminal prosecution of customers that would play on non-sanctioned sites and restriction of services from outside nations. Belgium was also looking to use ISP blocking software to prohibit its citizens from playing on other licensed European Union sites, something that the EC was strongly against.

The Director for Regulatory Affairs of the EGBA, Maarten Haijer, was in agreement with the European Commission’s decision to disallow the drafted legislation. “The requirement for operators to be established in Belgium is one of the clearest violations of EC Treaty provisions”, Haijer stated during the EGBA’s announcement of the decision. “It wrongly denies that many online gaming operators are effectively regulated, licensed and controlled elsewhere in the EU. As several jurisdictions in the EU already prove, it is possible to guarantee a high level of consumer protection and have a well regulated and competitive online gaming and betting market at the same time.”

The ruling by the European Commission prevents Belgium from enacting their plan and offers them an opportunity to present an acceptable plan by July 30th. If Belgium proceeds forward and implements the legislation, the EC has stated that they will also proceed with infringement proceedings of the European Union treaty, which could result in trade restrictions within the EU.

The recent refusal to accept Belgium’s plan for regulation of the online gaming and poker industry is in step with previous rulings from the European Commission regarding the subject. On June 8th, the EC rejected a similar proposal from France, whose proposed legislation had many of the same components as the Belgian plan. The French have until August to present an acceptable proposal.

Although the European Commission has been rejecting these proposals from Belgium and France, there is still a great deal of conflict over the issue throughout Europe. Back in March, the European Union was unable to come to any concrete agreement that would allow for the legislation of online gaming and poker and would provide for freedom of trade between its Member Nations. Without such comprehensive legislation, many nations have attempted to nationalize their online gaming industries, which is against the EU Treaty. Until the EU is able to have its Member Nations agree to a comprehensive plan, the conflict over internet gaming and poker will continue to provide problems.

Battle Brewing Over Dutch Treatment Of Betfair

The continuing battle over the online gaming and poker world isn’t limited to the United States alone. While at the same time being progressive in the regulation and taxation of the industry is accepted by some countries in Europe, other nations still are attempting to prohibit their citizens from participating in online poker and casino games. A recent article in the London Telegraph highlights this issue once again.

In a story from the Telegraph from earlier this week, Charlie McCreevy – the European Commissioner for the Internal Market and Services, which has vehemently monitored the online gaming industry across European borders – has threatened the Netherlands government for their tactics regarding the online gaming company Betfair. McCreevy believes that the Dutch nation is unfairly preventing Betfair from accepting action from the country for what he calls “protectionist” reasons. He has threatened to take his legal action all the way to the European Court of Justice, which is the judicial arm of the European Union.

The Telegraph article quotes Commissioner McCreevy as stating, “We believe the Dutch are in direct contravention of the rules of the internal markets and will be investigating the matter. The state has adopted a very protectionist approach to all forms of gambling.”

Betfair has been taking their own approach to affecting the laws of the Dutch government. Last week, the company filed a lawsuit against the Dutch Ministry of Justice that accused the Netherlands of blocking Betfair action in a “desperate move” to protect the position of De Lotto, the state gaming monopoly. Betfair claims it is allowed to accept bets from citizens of the Netherlands because it is a licensed operator in Europe and because Dutch residents are allowed to bet online with the governmentally operated lottery.

The Dutch, on the other hand, have claimed that it is illegal for the country’s banks to accept such betting action because Dutch laws do not allow for the licensing or operation of Internet gambling companies.

Commissioner McCreevy has been one of the people at the forefront of pushing for cohesive Internet gaming rights across the European continent. In the Telegraph article, he is quoted as saying, “We announced last year that at least ten of our member states were in contravention of internal market rules on gambling. While many members have engaged, the Dutch has completely failed to. There has been no progress at all.”

A look back at the tumultuous nature of online gaming and poker reveals that there is a tremendous uphill battle at stake for the online gaming and poker industry throughout the world. Massachusetts Representative Barney Frank is attempting to push legislation through the halls of Congress that would introduce regulation and taxation into the American landscape and halt the UIGEA, which was passed in 2006. Europe, however, is still wrestling with the issue.

While regulation has been accepted in some countries such as England, other countries have attempted to nationalize the operations for the benefit of their own countries and prevent the freedom of trade in online gaming. Nations such as France, Sweden, Germany, Denmark and Spain have been the major players in this nationalization effort, but some of those countries have changed their minds in the face of potential penalties or restrictions by the European Union through the Treaty of Commerce that all member nations have signed. In March, however, the EU admitted that they were unable to come to a comprehensive agreement regarding the streamlining of access to internet gaming across the continent.

Betfair suing the Netherlands?

A recently inaugurated Dutch Law prohibits ‘illegal’ gambling companies to advertise, or to have Dutch contractors. Betfair is one of the companies afflicted and is currently suing the Dutch government. They are also filing an official complaint at the European Union, due to the current gambling policy in Holland.

Holland is currently not allowing foreign gambling agencies to settle, since they want to prevent gambling addiction by means of a restrictive gambling policy. At this time only state owned gambling companies such as Holland Casino and the state lottery can provide people with their games. The Dutch minister of Justice has asked all national banks to block payments directed at international gambling ventures, so Dutch people are protected from the risks of online gambling.

Betfair is, not surprisingly, not happy with this development and states that it is illegal for the Netherlands to do this, according to European Law. CEO of Betfair Mark Davies: “This action damages the interests of the individual and stands in the way of open and honest concurrency.” It seems that finally a time arrives for countries to justify their gambling policies so that we may finally someday reach a global agreement on these issues, and distinct between different types of gambling.

You just read Poker News from HighStakesNews.com

Betfair suing the Netherlands?

Barney Frank Internet Gambling Bill Delayed Until Week of May 4th

According to an article released by Reuters on Tuesday, legislation to alter the landscape of the internet gambling industry in the United States will not be introduced by Congressman Barney Frank (D-MA) until next week.

Frank had originally stated that a bill favorable to the industry would be introduced in March. Then, an interview with The Hill revealed that it would not be seen until after Congress’ Easter recess. Now, legislation to overturn or clarify the Unlawful Internet Gambling Enforcement Act (UIGEA) will likely become a reality during the week of May 4th. A source close to Poker News Daily explained that pressure from “the guys writing checks” to release a bill may be taking precedence. In order to see time on the floor of the House of Representatives, past bills have undergone mark-ups and received amendments. Therefore, the bill Frank ultimately introduces may not be the final legislation enacted.

Frank told Reuters, "We'll be introducing it next week and I plan to move on it.” His previous attempt at creating a full licensing and regulatory framework for the industry came in the form of the Internet Gambling Regulation and Enforcement Act, which was introduced in 2007 and numbered HR 2046. The bill, along with a companion tax bill that was introduced by Congressman Jim McDermott (D-WA), would have generated up to $52 billion in revenue over a 10 year period for the U.S. Government, according to a study conducted by PricewaterhouseCoopers. On the reason for the two month delay, Reuters explained, “Frank said his Committee has been busy with other measures addressing the credit crisis and proposals to reform financial regulation.”

Frank made two attempts to clarify the UIGEA during the 110th Congress. Together with former Republican Presidential candidate Ron Paul (R-TX), Frank sponsored HR 5767, the first version of the Payments System Protection Act. However, amid pushback from Congressman Spencher Bachus (R-AL) as well as the failure of an amendment by Congressman Peter King (R-NY), HR 5767 failed to make it out of the House Financial Services Committee. In a June vote, King’s amendment was trumped by virtue of a 32-32 tie vote. An oral vote on HR 5767 saw the “Nays” outnumber the “Yays.”

In September, Frank introduced HR 6870, the second installment of the Payments System Protection Act. The bill passed out of Committee by a 30-19 vote, but then fell by the wayside as the global economy sputtered shortly thereafter. HR 6870 called for the U.S. Treasury and Federal Reserve to collaborate with the Attorney General’s office in order to determine what is legal and illegal under the UIGEA. The bill would have also suspended the UIGEA except for its directives related to online sports betting.

Despite being allowed to opt out of HR 6870, professional sports leagues such as the NFL came out against it. In March, the New York City-based NFL hired Jeff Miller to be its first full-time in-house lobbyist. His is charged with monitoring events on Capitol Hill and has pledged to support enforcement of the UIGEA. Miller told the Associated Press last month, “We want to maintain the integrity of the game, and gambling threatens that." The NFL completed its annual Draft over the weekend, with University of Georgia standout Matthew Stafford being chosen first overall by the Detroit Lions. Stafford received a six-year contract with over $40 million guaranteed.

Although a final copy of the proposed legislation has not been publicly released, Reuters claimed it “would overturn a law imposed during the Bush administration that has hurt U.S. trade ties with the European Union. Frank said the bill was being drafted this week.” Late last month, investigators from the European Commission found the United States to be in violation of its World Trade Organization (WTO) obligations due to the country’s stance on internet gambling. The Commission’s findings came as a result of a complaint filed by the Remote Gambling Association.

A call placed to Frank’s press secretary was not returned as of press time. Stay tuned to Poker News Daily for the latest news from Capitol Hill.

PokerListings.com News Wrap-Up: March 22-29

As part of a weekly series we've compiled a list of stories that didn't quite make it into the main news roster but were worth mentioning.

This week saw a certain Norwegian poker player get a deal from the world's largest poker room, while yet another study found poker to be a game of skill.

Johnny Lodden signs with Team PokerStars Pro

Team PokerStars Pro was already home to a number of well-known pros in Daniel Negreanu, Joe Hachem and Greg Raymer but surprisingly it didn't have a lot of Scandinavian content.

That seems to be changing as Norwegian pro Johnny Lodden was signed by the team this week. Lodden is an accomplished live and online player who used to wreak havoc back in the day as "bad_ip."

Lodden will join fellow European players William Thorson (Swedish) and Noah Boeken (Dutch) on the team.

http://www.pokerstarsblog.com/team_pokerstars_pro/2009/team-pokerstars-pro-signs-johnny-lodden-037861.html

Bodog sets the line on Nguyen's $4 million promise

Bodog is now taking bets on Scotty Nguyen's promise to PokerListings.com that he will retire if he makes less than $4 million at the 2009 World Series of Poker.

The outlandish promise, which Nguyen made in an interview with PokerListings TV, started a wave of forum chatter, with a multitude of players claiming they are willing to take the Prince of Poker's action.

As result, Bodog oddsmakers have stepped up and set the line at +2500 that Nguyen will reach the magic $4 million mark.

"Bodog's annual WSOP prop bets are a staple leading up to the main event," Bodog Sportsbook Manager Richard Gardner said.

"So when we came across the PokerListings.com video of Scotty Nguyen saying that if he doesn't win at least $4 million at this year's WSOP he'd quit the game, we knew this would be the kind of action our players would like to get in on."

To place your bets head over to the Bodog Sportsbook and check out all of the 2009 WSOP prop bets.

EU claims U.S. Internet gambling laws violate WTO

The European Union says U.S. laws on Internet gambling are in violation of World Trade Organization rules.

Following an investigation into U.S. measures affecting foreign suppliers of Internet gambling services, the European Commission released a draft report Thursday concluding U.S. laws deny access and discriminate against foreign suppliers of gambling and betting services.

The report says U.S. Internet gambling regulations effectively create a trade barrier which has adverse effects on EU economic interests.

Although the report claims WTO proceedings against the U.S. would be justified, it does not include any recommendation for actions, suggesting only that the issue should be addressed with the current U.S. administration.

New study finds poker is a game of skill

Once again a study has found that poker is a skill game. The latest study was released by Cigital Inc. in conjunction with PokerStars.

The study used data acquired from 103 million hands of hand No-Limit Hold'em and found that in 75% of those cases an outcome was decided without a showdown.

Learn more about the study and the Poker Players Alliance's thoughts about it in the link below:

http://pokerplayersalliance.org

Ultimate Fighting Championship shuts door on Full Tilt Poker

Full Tilt Poker and the Ultimate Fighting Championship seemed like a match made in heaven, with fighters like Forrest Griffin and Mike Swick having donned the FTP badge to play in tournaments.

Instead, according to mmapayout.com, the UFC has placed FTP on the banned list, which means no fighter can don Full Tilt gear. The unconfirmed rumor is that Ultimate Bet or Absolute Poker may be taking over as a key sponsor.

http://mmapayout.com/2009/03/on-tilt-poker-company-full-tilt-on-no-no-list/

Poker in Texas?

Legal poker in Texas seems to be getting closer and closer to reality and the folks over at Pokerati have been following the issue closely. The bill for poker in Texas is titled HB 222 and it is scheduled to be voted on this week.

http://pokerati.com/2009/03/27/re-texas-poker-bill-up-for-committee-vote-today-6/

Duke returns to WSOP Academy Ladies Only Event

It was announced earlier this week that the WSOP Academy Ladies Only Event hosted by Annie Duke will once again be back this summer.

It's somewhat ironic given that Duke is vehemently against playing ladies events, but apparently she feels differently about women-only training workshops.

The Celebrity Apprentice star will host the event at Caesars Palace in Las Vegas June 5-6. Check out the Web site for more details.

http://www.wsopacademy.com/

 

Visit PokerListings.com