Internet Gambling: October Will Prove an Interesting MonthIt is online appropriate that the Internet gambling sector will usher in the month of October with a much anticipated conference taking place October 1 thru 3. Industry representatives from all over the world will descend upon Barcelona for the three day event. Gambling911.com will be speaking at The European I-Gaming Congress & Expo, now as part of the media segment during Day 1.
There is plenty of room for optimism during the month of October, though it remains to be seen whether online gaming operators and enthusiasts can celebrate exactly one year after passage of the Unlawful Internet Gambling Enforcement Act that practically crippled portions of the billion dollar industry.
So what should we expect in October?
iMEGA vs. The US Government - A US Judge will be reporting back on her findings as to whether a Temporary Restraining Order will be issued to prevent enforcement of the UIGEA. A favorable outcome in this matter will at the very least buy more time for the burgeoning industry.
Milton Friedman, a veteran poster of the popular TwoPlusTwo Poker forum, questioned the potential outcome of an iMEGA victory as it pertained to the TRO.
"I am pretty sure that if a TRO is denied, and the case is not dismissed, then the next step would generally be a motion for a preliminary injunction, with a likely period for discovery and maybe an evidentiary hearing, not a trial on the merits for a permanent injunction.)
"If the case is not dismissed, the time will arrive when iMEGA has to either put its cards face up to show irreparable injury to it members or fold. There will be no equitable relief without a showdown of hands, iMEGA cannot refuse to turn over its cards/members, period."
But iMEGA founder, Joe Brennan, Jr., has already made it abundantly clear that his trade association has been set up to protect its members privacy.
"We are a 501 (c) 6 trade organization. This gives the association an opportunity to have standing to lobby on behalf of our members and to maintain their privacy."
Next on the agenda is the World Trade Organization matter involving Antigua and its win against the United States. The WTO found in favor of Antigua, which claimed US actions against online gambling interfered with its own lucrative betting industry. The World Trade Organization also found that by exempting horse racing from the UIGEA, the US was engaging in "Protectionism".
The US government is coming under increasing pressure by other nations to abide by the WTO decision or risk severe penalties. Specifically online gaming sites established in the European Union are claiming that the United States owes about $100 billion in trade concessions to the EU to make up for its ban on online gambling companies.
"The ramifications of that defeat are still rippling around the world, and major American trading partners such as the EU and Japan have begun lining up behind the Antiguans in defense of WTO principles. Potential damages are really starting to pile up," writes Burke Hansen of Register.com
The United States also faced mounting trade concerns with nations such as China, which may not be so responsive to US "counterfeiting" concerns should the WTO Internet gambling decision be ignored.
With the continued collapse of the US dollar, there is little wiggle room for the United States government, which continues to take a hard line stance against online gambling. Only last month, ousted Attorney General Alberto Gonzales, ensured Arizona Senator Jon Kyl (R) swift action in enforcing the UIGEA. Kyl was one of the bill's co-authors.
Then there is the Poker Players Alliance, which claims to have over 700,000 members heading into the month of October. This group is planning a rally of sorts in Washington, DC October 22 to 24.
But not all poker players are exactly enlightened by the PPA.
One member on the TwoPlusTwo.com forum writes:
So we are supposed to show up, spend our money, lobby, and to convince people to listen to a board with very little player interest? Sorta like Gandalf going up in Isengard to discuss deep matters with Saruman and leaving us little hobbits out here on a barrel of tabac while our "betters" hammer out a deal that may or may not screw us. I think everyone WANTS to be on board in this, just we want some more information about the piloting.
Many who post on the world's most popular poker forum have suggested that the Poker Players Alliance caters primarily to so-called "affiliate farms".
BluffThis, an active TwoPlusTwo member since 2004, comments that "the bottom line and real issue is that the interests of affiliate farms dominate the PPA board and are determined to keep it that way."
Perhaps the PPA's greatest downfall, however, continues to be its inability to garner extensive media coverage beyond the poker community and these "affiliate farms".
"Anyone can come up with a fancy name, call themselves a 'poker association' and drum up member support, but unless the media sees real results the PPA is nothing more than a glorified poker portal with little substance," said one industry observer who wished not to be identified.
A little harsh perhaps, but the PPA has not exactly been endearing itself to the mainstream press outlets. To date, The Poker Players Alliance has ignored Gambling911.com's request to cover the event.
"We are always being approached by the mainstream press asking our opinion on the World Trade Organization decision in favor of Antigua and the iMEGA matter," commented Payton O'Brien, Senior Editor of Gambling911.com. "Never once have we been asked about the Poker Players Alliance."
O'Brien believes that the majority of poker posters have hit the nail on the head.
"The PPA needs to branch out and start reaching a broader audience. They cannot fall into the trap of being some 'good 'ol boys' club."
Under the guidance of Former New York Senator Alfonse D'Amato, the PPA will likely address this issue.
"We just don't see it happening in time for the Washington fly-in," O'Brien says.
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Christopher Costigan, Gambling911.com Publisher
Originally published September 28, 2007 8:54 pm ET
