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This week's online gaming news with Brian Cullingworth
DENIAL OF SERVICE BANDITS CAUGHT
Russian extortionists responsible for
attacks on sportsbooks
Best news this week was from the BBC, which reported that international
crime-busting teams had tracked down and arrested a group of
twenty-something year old Russian blackmailers who have been disabling
sites that refused to pay their "protection money"
Three men were seized in Russia after a police operation involving
specialist crime units from Britain, Russia and four other countries.
The men were part of a global extortion racket which began in October.
The authorities also revealed that 10 members of the same online
extortion gang in Riga, Latvia were busted in November 2003. Those
arrests led to the men in Russia.
Money transfer agencies helped the NHTCU track the funds.
The gang targeted the websites of British and other bookmakers, causing
the firms millions in lost business. They overwhelmed bookmakers'
computer servers with thousands of requests for information - "denial of
service" attacks - designed to paralyse them and prevent other users
from being able to access their facilities.
Some leading betting websites ceased operating and were unavailable -
sometimes for short periods but in extreme cases, for several days.
Companies targeted included high street bookmaking chains such as William Hill, Ladbrokes and Coral and internet betting exchanges such as Betfair and BetDaq. The gang demanded payments of up to $40,000 (£21,000) in return for stopping the attacks. Three seperate arrests took place in St. Petersburg, Russia, and the Saratov and Stavropol regions of southwest Russia. The men are believed to be part of a ring that uses legions of compromised or "zombie" computers to launch denial of service attacks against online sportsbooks that refuse to pay protection money, says Felicity Bull, a spokesperson for the UK's National Hi-Tech Crime Unit (NHTCU).
The NHTCU is a law enforcement agency that investigates U.K. computer
crime. It worked with their counterparts in the Russian Ministry of
Internal Affairs (MVD), including the MVD's computer crimes specialist
department and Investigative Committee, according to a NHTCU statement.
The arrests this week follow a complaint in October 2003, by Canbet UK, which was forced to pay protection money to prevent its Web site from being attacked, Bull says. NHTCU and Russian investigators used traditional investigative techniques and computer forensics to trace the extortionists back to Russia and identify them, using information on the source of the DoS attacks and money transfer records. Agencies in Australia, Canada, Estonia and the U.S. aided in the investigation, the NHTCU says in a statement.
Authorities believe that organized criminal groups in Russia and other countries run the extortion ring. However, Bull notes that more arrests are possible. Russian investigators seized computer equipment from the men, which may provide further clues about the criminal gang, she says. Authorities still do not know how much money the group collected from sports books--though the figure is believed to be in the hundreds of thousands of dollars--or how many sports books it extorted, Bull says. Many online sports books that serve the U.S. are based in small countries such as Costa Rica and Belize, which lack the resources or expertise to investigate extortion attempts. If charged, the three men will be tried in Russia. NHTCU also expect more arrests to follow, Bull says, "We expect to find more people in the chain. Once you arrest somebody, you start to find out so much more," she says. THIS DOESN'T SOUND RIGHT Would the law say this?
Time will tell, but this story from the Australian Broadcasting
Corp just doesn't ring true - the Aussie national police are
not some third world clown outfit, and it is difficult to imagine them
giving this sort of advice to a DDoS complainant unless they intended to
set up a trap....we may see follow-up stories on this.
Centre Racing's proprietor Terry Lillis
felt he was caught between a rock and a hard place when extortionists
threatened to close down his online betting agency if he didn't pay them
US $20,000.
Lillis says he went to the federal police to try and sort out the
problem, only to be told that he would be better off paying the
extortionists.
After employing an American security firm at significant cost. Centre Racing is still not immune from the perils of online extortionists. BIGGER ISLE OF MAN OFFICES FOR MICROGAMING
More support planned for expanding business
Top online gambling turnkey provider Microgaming has announced that it will soon move into new and larger business premises on the Isle of Man as a result of strategic restructuring to better support an expanding business.
Part of the restructuring plan will involve the transfer of the company’s sales and marketing functions to the extensively equipped new building in order to improve client support internationally and internal liaison.
"This move to the Head Office will allow these key functions to provide more comprehensive support for the Company's growing activities, says Microgaming CEO Roger Raatgever.
"In the past year Microgaming has seen a substantial number of new operators selecting its gaming software to power online casinos and poker rooms, and as a result, we will be expanding to meet support demand for the Company's growing customer base. We hope to move into our new building on the 1st October, 2004."
JERRY'S SHY TASMANIAN THE FASTEST
Rare big birds the winner in this race
Remember Ladbrokes's charity Big Bird Race
reported in InfoPowa bulletins some months ago? This week the results
were released.
A Tasmanian Shy Albatross named Aphrodite "sponsored"
by model and ex-Rolling Stones spouse Jerry Hall
won the epic 6000-mile race in aid of Albatross conservation across
the Indian Ocean.
The Ladbrokes Big Bird Race began at the end of March, electronically
tracking the majestic birds as they made their spectacular migratory
journey from Australia to the Cape of Good Hope in South Africa.
Betting folk were encouraged to have a ‘flutter’ on their favourite
bird and were able to keep track of progress via the Ladbrokes
website. Each albatross was sponsored by a celebrity, ranging from
Queen’s Brian May to Queen Noor of
Jordan.
The event was organised to highlight the plight of the endangered
seabird, thousands of which fall victim each year to longline fishing
trawlers. The trawlers tow baited hooks, which ensnare the birds,
dragging them for miles underwater.
Of the eighteen fledglings that started out, only two, apart from
Aphrodite, are still emitting signals.
The project has also been an invaluable opportunity to closely study
the migrating habits of the birds. All money made by Ladbrokes from
the race will go to research charities.
BROADSIDE FROM
GAMCARE
Not enough being done to stop underage gambling
Responsible gambling charity GamCare, criticised service providers and
mobile phone companies this week for not doing enough to discourage
under-age gambling.
New Media Age quoted GamCare’s Michael Smeaton as
saying that many operations do not stringently check user age or
display sufficient age limit warnings.
"Age verification is still an absolutely massive problem," he said.
"I'm stunned that no ISPs have been involved yet. Maybe they don't
realise the extent of the problem."
Smeaton feels that the acceptance of debit cards such as Solo or
Electron are a cause for concern, as these are often issued by banks
to children as young as eleven. There are currently up to one million
under eighteens in the UK with such cards.
It wasn't all brickbats for gambling sites, however. Smeaton praised
many operations for sensitivity and commitment to the underage issue,
and admitted it was hard to know the extent of the problem.
STRANGE THINGS HAPPENING
Some Client Care 101 needed
Making a purely subjective tour of the major portals this week,
InfoPowa noticed an astonishing range of bad customer relationship
incidents. And we were only visiting a few of the top fora!
We know that players as well as casinos push the envelope, but the
offhand manner in which customers were being treated just seemed
nonsensical in a highly competitive business with high client
acquisition costs.
Some of these incidents make it into our bulletins as a wake-up call
for those involved. But there are plenty of other disputes across the
industry that do nothing for player-casino harmony leading to better
business. And issues that could be resolved with a little honest
investigation and common sense are allowed to escalate into full-blown
public fights that help nobody.
This week we saw numerous examples of ignored complaints, deliberate
slowpay with pathetic excuses (the old "audit" came up several times)
and another ancient and equally unacceptable "The manager's away on
leave". Then there were questionably disqualified bonuses and
bannings - throwing the baby out with the bathwater it seemed in some
cases. These often originated in poorly thought out promos from which
the casino was clearly trying to back away by accusing players of
bonus abuse.
And talking bonus abuse - it is not bonus abuse if a casino offers a
promotion and a player legitimately accepts the T&Cs, is allowed to
play and complies with those T&Cs laid down by the casino. If you
don't like his action, pay him what is owed and then assert your right
of admission by locking him out - don't screw him on what is owed up
to the date of your decision...that is plain dishonest.
Exacerbating these issues were what seemed to be clumsy Support and
even management decisions accompanied by attitudes that could be
described as insolent, uncaring and in some cases downright arrogant.
Players are communicating with each other and with genuine player
advocates more now than at any other time in online gambling's short
history. The competition is tough, and even the new players are
learning that in this largely unregulated industry they need to
research before giving their business to a casino.
It seems to us that more investment in efficient support
infrastructure and training is indicated, not only for lowly CSRs, but
for operational management too. A hard won reputation can be badly
damaged by thoughtless or uncaring employees.
QUIET RECEPTION FOR BETONSPORTS
Low volumes in first week on AIM
Industry observers were surprised at the apparently lacklustre immediate
response to Betonsports public flotation last
Thursday, with a disappointingly slow reaction to the shares, which
were put on at 140 p.
The betting company aimed to raise GBP 54.6 million in the exercise,
calculating that the company would be capitalised at GBP 114 million
at the placing price. Betonsports operates one of the world's largest
US-targeted offshore betting operations, with $1.2 billion staked on
sports bets by US gamblers in the last financial year.
Whilst observing that it was still early days, some observers felt
that Betonsports' strong focus on the troublesome US market may have
slowed interest down.
PHISHY BUSINESS
Watch out for information fraudsters
Security Pipeline carried an excellent article by
Michael Cohn this week on criminal activity that is
costing credit card holders millions in fraudulent transactions.
Termed "phishing" the modus operandi involves crooks sending fraudulent
e-mail that appears to be from a legitimate organization such as a bank,
credit card company, online merchant, or Internet service provider
asking the recipient to divulge personal and financial information
birthdates, Social Security numbers and PIN codes. Unlucky victims are
then subject to identity theft, monetary losses, and credit card fraud.
In the USA, federal and state law enforcement has linked organised crime
to phishing attacks that are increasing in both volume and
sophistication.
"There's a lot of activity in the former Soviet bloc, the Eastern bloc, Latvia, and Ukraine," says John Curran, supervisory special agent with the Federal Bureau of Investigation's Internet Crime Complaint Center. "It definitely looks like there are organised groups."
The U.S. Secret Service has also noted an increase in
organized crime involvement in phishing. At AIT Global's Annual InfoSec
Meeting at the United Nations in June, Robert
Caltabiano, an official in the New York Field Office of the
U.S. Secret Service, pointed to the increasing indications of organised
crime in phishing attacks. Although Caltabiano recommended that victims
first go to local law enforcement for help, he noted, "with phishing
attacks, the information goes global."
There's even an Anti-Phishing Working Group. This industry forum, reported 1,197 unique attacks in May 2004, up from 402 attacks in March.
Making matters worse are hacker websites that sell phishing starter
kits. "There's a whole underground economy of trading credit card
information back and forth and the tools for doing credit card
fraud," an official of the group says.
On the positive side, there have been several successful prosecutions.
The Moscow Times reported in May that the U.K.'s National
High-Tech Crimes Unit arrested 12 Russian-speaking people who
had been recruited by the Russian mafia to participate in a phishing
scam. The suspects, who came from Russia, the Baltic republics, and
Ukraine, set up bank accounts where money stolen from phishing victims
was deposited.
The New York Times recently reported that authorities in Romania had arrested 100 hackers involved with phishing attacks. The Romanian General Directorate for Combating Organised Crime, working with the Secret Service, arrested one hacker, Dan Marius Stefan, in September 2003. Stefan was convicted of stealing nearly $500,000 through phishing e-mails that claimed to be from eBay. He is now serving 30 months in jail.
In the United States, the Federal Trade Commission has worked with the Department of Justice and the FBI on filing complaints and prosecuting several individuals, including Zachary Keith Hill, of Houston, Texas, who pleaded guilty in May and was sentenced to a 46-month prison sentence. Hill had been sending e-mails claiming to be from the AOL Billing Center. Phishing is clearly another growing danger, demanding increased alertness from casino and player alike. PLAYTECH GETS THE POKER BUG Four new poker rooms to get iPoker
Turnkey provider Playtech initiated
the "soft" launch of their new online poker software, iPoker,
with play for fun tables this week.
The software allows both 2D and 3D views and the graphics are of a professional standard. A choice of downloads were available from Club Dice Poker.com, Fair Poker.com, Noble Poker.com and SIA Casino.com. Full operational status is expected soon.
POKER ROCKS!
Now it's a
rock star tourney
The poker phenomenon shows no sign of
slowing down, and this week the Las Vegas Convention and
Visitors Authority (LVCVA) and Clear Channel
Entertainment Properties announced the first Vegas
Rock Star Poker Tournament and Sweepstakes.
Set for August 26th to 28th at the Palms
Casino Resort, the tournament will be a one-of-a-kind, exclusive event
headlined by rock greats Dave Navarro, Tommy Lee and
the Goo Goo Dolls' John Rzeznik.
Winners and their guests will thrill to
the excitement and unpredictability of playing side-by-side with three
of the most animated and talented artists in the music world. The
weekend begins with a tutorial to get players game-ready, followed by
a private "meet and greet" session and dinner with Navarro, Lee and
Rzeznik. After the tournament, the winners will attend an exclusive
after-party in the infamous Real World Suite at the Palms. The 2,900
square-foot, three-bedroom suite has become the most sought after
high-roller suite in town.
Winners will be chosen from registrations
at the tournament's official Web site --
http://www.vegasrockstarpoker.com -- and from winners of radio
promotions in New York, Chicago, Houston, Phoenix, Los Angeles and San
Francisco. The sweepstakes began July 5 and continue through August
12, 2004 -- the top prize is $10,000.
CASINO
CAUTIONS
Pay for your fun
Angelciti's Shark Casino has some pretty 'original' ideas about playing for fun, a facility most decent casinos offer unlimited and free of charge so that players can practice and get the feel of online gambling. A player reported this week that
he was told by Shark casino
employees, "We have eliminated the Fun Money replenishment to make the
online gambling experience more life-like. Enjoy the casino." He
pressed the issue, only to be told that to top up the fun balance he was
required to make a deposit and Shark would "bonus" his fun fund by 100
times whatever he had deposited in real money mode. This has to be a new
low in Angelciti management, who had not responded to our emails when we
went to press.
Another instalment attempt
Connect to Casino made the Cautions list
last week with the astonishing story that it not only kept a player
waiting overlong for a payout, but tried to arbitrarily pay him at $500
every two weeks for 22 weeks. Clearly this was not a flash in the pan,
because this week another complaint surfaced where after four months
awaiting payment a stunned player was offered $500 instalments every 15
days. Fortunately for the player a mediator intervened and achieved what
should have been the case right away - a one-time payment. One has to
speculate how many other players have received this sort of
proposal....and it's one helluva way to run a casino business.
Complying with the rules is
not abuse
VIP Management Services exec
Skip Allan was perhaps having a bad day during a tussle with a
player owed $200 in a bonus dispute involving three casinos this week.
Either that or he has little respect for those he terms "bonus abusers".
Long story short, the player had bonuses disqualified and then emails
ignored at this normally straight-up sportsbook and casino group. So a
respected mediator got involved and was ignored too. Then it hit the
message boards, and other industry people working behind the
scenes contacted top execs at the group. Allan responded, awarded the
$200 rather ungraciously and wrongly accused the player of only just
meeting the T&Cs. (Say what? The casino draws up the rules, the player
complied and more with them....and he's an abuser?) Rubbing salt in the
already raw wounds, Allan then wrote in an email copied to the player,
"...we have chosen to keep our rollover requirements low
to attract the masses, of which most aren't out whoring bonuses like
(the player). This is the sort of isolated faux pas that can cause
untold damage even to a reputable group.
The final word goes to the player. "But in
all fairness to Skip and his operations, the end result was fair but I
doubt most other players would have bitched the way I did and got paid.
In fact I received $15 over the $200 they owed me which I will spend
tomorrow on a personalized t-shirt with the slogan, "I am a
Bonus Whore"
COOL CASINOS
Beteuro.com is a new
sportsbook and casino site owned by Alistair Assheton's VIP Management
Services (he's a reputable industry exec, an IGC stalwart and chairman
of the Internet Gaming Association) The site has 24/7 Support and an
average presentation and smallish gambling suite from IGW. With a
Curacao licence, it is understood that the site is operated from that
location. The group also owns vipsports, vipcasinos and vipsoccer.
There's no shortage of online poker rooms, and this
week saw another new arrival in the form of Get Minted
Poker.com. Owned by the UK firm Cashcade,
this site is a member of the "get minted" family of TV and general
gambling sites in Britain and claims to be the "first pound sterling
poker site". The presentation is very professional and informative,
with download gambling software for the Texas Hold Em, Omaha, Omaha Hi
Lo, Seven Card Stud and Seven Card Stud Hi Lo games powered by
Wagerworks. Encouraging news for players is that the operation is
licensed through the demanding and genuine Alderney
jurisdiction. There's a good range of UK-oriented financial
instruments available, and multiplay/multitable/ promo and big win
tournament action is offered. Interestingly, the site claims that
there are 3 million avid poker players in England alone. Signup
bonuses are available.
CASINO CHANGES
Press material from Floridita Club
Casino.com tells us that after months of careful planning,
the re-design and reconstruction of their new website has finally
been completed. The operation has been around since November 2000,
and is part of the Minivegas online gaming network. With a totally
revamped image and claims of "...thousands of new players signing up
every day", the site shows no signs of slowing down and anticipates
more business with the new look.
Operation of the Queens Club Casino.com has
reportedly been taken over by the Canbet organisation.
VINNIE THE FACE OF NEW BRIT ONLINE POKER ROOM
Wagerworks powers newest
addition to Get Minted collection
Yet another celebrity-supported online
poker site launched this week - this one in the UK. It's an
impressive, Alderney licensed site powered by Wagerworks.
Cashcade, the company
behind the first pound sterling poker room Get Minted
Poker.com, has announced that it has signed up ex soccer
star and hard man turned Hollywood star, Vinnie Jones
as the chiselled face of its new marketing campaign.
Cashcade feels the actor, whose film
credits include Lock Stock and Two Smoking Barrels and Swordfish, is
just the man for the site’s smoky poker den image – a departure from
the glamorous Vegas themes of other poker sites.
Jones will appear on the CD and
packaging of a 100,000 direct mail campaign, through Boost
Communications who have further campaigns planned in the near
future.
POWERFUL PARTNERS
Betfair has a suitor
By ruling that legislation to curtail the operations in Australia of
aggressive P2P betting exchanges like Betfair.com, the
federal government in that country opened new opportunities for
mega-successful gambling entrepeneurs like Kerry Packer.
He was quick to open negotiations with Betfair, and this week's big news
in sports betting land is that his Publishing and Broadcasting
Ltd has teamed up with Britain's Betfair in a
local internet betting operation that threatens to shake up Australia's
gaming industry.
The two companies have announced a 50:50 joint venture to develop an
internet betting exchange - a development which has been staunchly
opposed by established local gaming organisations such as the
thoroughbred racing industry.
Internet exchanges like Betfair.com let gamblers create their own odds
by betting against other punters rather than a bookmaker. They also
allow bets on the loser in a multiple field.
The joint venture will join Melbourne's Crown Casino in PBL's gaming
portfolio, and a bid for control of Perth's Burswood Casino, currently
40 per cent held by PBL, is also under way.
PBL's Betfair investment - which encompasses only the Australian and
New Zealand businesses - depends on the granting of an operating
licence by an Australian state or territory for the venture to
proceed. An on-shore licence is required to allow a company to market,
sponsor and operate from within the country.
Betfair md Mark Davies said while the terms of the
joint venture had not been disclosed, part of Betfair's strategy was
to be seen as an Australian company rather than a British invader.
"What (PBL) bring to the party is they make us Australian in a way we
can't suddenly become Australian and they have tremendous means to
distribute the product," he said.
"The relationships they have with sport, they are totally connected
with people all across the sporting world, they also have distribution
channels like Nine MSN and television operations."
Privately-owned bookmaking company Centrebet has said
it would be interested in applying for an Australian licence for a
betting exchange if they became available.
HARRODS LOOKS ON THE BRIGHT SIDE
CEO bullish on Internet
possibilities
Online casinos are set to take an even bigger share of
the gambling market, says Manu Gambhir, CEO of Kismet
International which operates Harrods Casinounder
licence from prestigious London store Harrods Ltd.
In a bullish statement released this week, Gambhir says
that without the huge costs of building and operating land-based
casinos, online casinos can offer better odds and promotions and are
consequently taking an increasing proportion of the regular gambler's
spend.
Add to this the increasing security of online casinos,
especially for those with recognised brand names and a wider choice of
games, and you have a cogent proposition for the discerning gambler and
occasional punter alike.
Online casinos have had a recent shot in the arm with the
surge in popularity of online poker sites and games. Last year online
gambling on poker increased from £6 million a day in January to £38
million a day in December according to The Guardian.
New channels, too, are also contributing to the growth of
online casinos. Interactive television is forecast to generate Euros 1.4
billion in online casino gambling in Europe by 2007 Screen Digest
reports. New wireless technologies and handsets will play a prominent
part in the growth of mobile gambling, and casino gambling via mobile
phones is forecast to reach a global value of $6 billion by 2008
(Juniper Research Gambling Report).
"Online casinos have really come of age", Gambhir
concludes. "Like the phenomenal success of betting exchanges, online
casinos have put the fun and the odds back in favour of the afficionado
gambler. Add 24/7 availability from the comfort of your own home and you
can understand the compelling appeal of casinos like Harrods Online."
SURVIVOR...CASINO STYLE!
Washington realityTV gets on
the gambling bandwagon
Regional media, The Everett Daily Herald asked this
week, "Can a local casino reality TV program hit the jackpot?" And
reported that local television network KIRO-TV
certainly hopes so.
"Tulalip Casino Night" is a new program of the reality TV genre that
begins a six-episode trial run that kicks off at 10 p.m. tonight
(Friday) and airs in that time slot through Aug. 27 on Channel 7. The
show runs 10 pairs of players through a gamut of casino games, such as
blackjack, roulette, Baccarat, slot machines and Texas hold'em poker.
At the end of each episode, the pair with the least amount of money left is eliminated. The team that outlasts the rest gets to spin a wheel for the chance to win $1 million.
CONFERENCE CORNER
A quick checklist for those diaries
28 - 30 July Bodog Handicappers
Conference, Las Vegas
October 5 - 7 Global Gaming Expo, Las
Vegas
November 8 - 10 European I-Gaming Congress
and Expo, Barcelona
November 10 - 12 South American Gaming
Suppliers Expo
January 25 - 27 (2005) International
Casino Exhibition, London
March (dates tba) Pacific Congress on
I-Gaming, Sydney, Australia
April 7 - 8 Casino Affiliate Conference,
Amsterdam
May 3 - 5 Gaming and Casino World,
Australia
June 13 - 15 GIGSE, Montreal
June 22 - 24 Asian Casinos Expo, Singapore
June 27 - 28 Alternative Payment
Processing Conference, London.
Originally published on July 25, 2004 (10:48 pm ET)
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