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Foes try to squelch online gambling
Published: 2006-04-25
 Sensing an opportunity, lawmakers hope their bill gains support this year
By BENNETT ROTH
Copyright 2006 Houston Chronicle Washington Bureau
WASHINGTON - As part of his morning ritual, Dan Michalski likes to flip on his computer and ante up for an online game of Texas Hold 'em with poker players from around the world.
"A single table tournament with a cup of coffee is not a bad way to start the day," said Michalski, a 33-year-old Dallas resident who authors a poker blog.
In Congress, however, some lawmakers are pushing legislation that the House may take up later this spring to ban online gambling. Some lawmakers say it leads to addiction among younger people and serves as a potential magnet for organized crime.
Sponsors of the bill are hoping it will gain more traction this year because of a backlash against Jack Abramoff, a former lobbyist who represented gambling interests and who recently pleaded guilty to corruption charges.
In a recent plea agreement related to the lobbying scandal, Tony Rudy, a former aide to Rep. Tom DeLay, R-Sugar Land, was charged with lobbying members of Congress to oppose a similar Internet gambling proposal while receiving gifts from Abramoff in return.
Opponents warn that any crackdown would not only be impractical but also could thrust the government into the role of Internet censor.
Revenue from online gambling around the world has grown from $3 billion in 2001 to $12 billion last year, according to Christiansen Capital Advisors, a marketing research firm. Lawmakers estimate that in 2005 about half the total came from Americans.
Damage to families cited
Rep. Bob Goodlatte, R-Va., who is the lead sponsor of legislation to ban Internet gambling, warned that the impact of these virtual gambling operations "can be more detrimental to the families and communities of addicted gamblers than if a bricks-and-mortar casino was built next door."
Technically, federal officials already consider these online gambling operations illegal under a 1961 law that bars wagering over the telephone. As a result, these operators have moved to 2,000 offshore locations, including Costa Rica, Antigua and Bermuda.
Anti-gambling proponents say authorities need better tools to crack down on online gambling, which so far has proven difficult to stop.
Lawmakers also say the Goodlatte bill, which has 140 sponsors, clarifies the 1961 law by specifying that anti-gambling prohibitions extend to wireless technology.
Goodlatte's legislation would still allow online gambling and online lottery sales within states that have laws permitting such activities. Texas does not have an online version of its lottery, and it doesn't allow other forms of online casino gambling. It does not deal with online betting on horse racing, which is permitted and regulated by another federal law.
The bill, which does not apply to bettors, would give officials the ability to force Internet providers to block access to gambling sites.
Another measure, sponsored by Rep. Jim Leach, R-Iowa, which was recently approved by the House Financial Services Committee, seeks to crack down on offshore operations by beefing up efforts to cut off the flow of money from U.S. gamblers.
The proposal would penalize financial institutions that allow credit card, check or other fund transfers to go from U.S. customers to online gambling operations.
Getting around restrictions
Joseph Kelly, a business law professor at Buffalo State College who studies gambling issues, said the proposed laws may make it easier for the government to go after U.S.-based firms that provide advertising for online gambling. But he said the gambling operations can circumvent restrictions on U.S. banks and credit card companies by using foreign financial institutions.
He also suggested that many Americans would be wary of giving authorities the right to shut down Internet sites.
"You really want to make them into thought police?" he asked.
John Kindt, a professor of business and legal policy at the University of Illinois who studies gambling, said the proposals will serve as a deterrent to some gamblers, who often mistakenly assume that these games are legal because they are on the Internet.
Kindt said online gambling is dangerously seductive for younger people, adding, "It is like putting a drug pusher in everybody's living room."
3 million Americans play
An estimated 3 million Americans play online for money, according to the Poker Players Alliance, a nonprofit group that represents poker players, including the interests of those online. Recently, the alliance brought three professional poker players to Capitol Hill to argue against the proposed Internet gambling ban.
"It's a personal liberty issue with regard to how you spend your money and what you see over the Internet," Michael Bolcerek, president of the poker group, said.
The measure has faced formidable foes in the past.
In 2000, Abramoff worked with Rudy, who at the time was a top aide to then-House Whip DeLay, to pressure House GOP leadership to reject the ban on Internet gambling. Abramoff was working on behalf of his client eLottery, a gambling services company that opposed the measure.
Rudy, who pleaded guilty last month to a conspiracy charge related to the lobbying scandal, received many perks from Abramoff, including a trip in 2000 to Britain with DeLay that was indirectly and partly funded by eLottery.
DeLay was a longtime opponent of legalized gambling, but he voted against the Internet gambling prohibition a month after the British trip, claiming it had too many exemptions. DeLay, who announced this month he will be resigning from Congress, is one of the sponsors of the Goodlatte measure this year.
Other Houston-area sponsors of the legislation are Reps. Kevin Brady, R-The Woodlands, John Culberson, R-Houston, Gene Green, D-Houston, Mike McCaul, R-Austin, and Ted Poe, R-Humble.
Suspicions of crime
The Justice Department also has expressed fears that the growth of Internet gambling is being infiltrated by organized crime.
Federal officials recently indicted associates of the Gambino organized crime family who had established online wagering accounts for their customers for sporting events and horse racing.
Officials say these operations also can be used as a conduit for money laundering. For instance, customers can transfer funds concealed as phony gambling losses. Or the gambling operations can direct money to individuals through inflated payoffs on wins.
Although both the Senate and the House have approved different versions of Internet gambling legislation in the past, they have not been able to reconcile their differences. Sen. John Kyle, R-Ariz., has also sponsored legislation this year similar to the bill authored by Leach, but the measure has not been considered in the Senate.
Cautious optimism
Leach said he was cautiously optimistic that proponents of the ban would be more successful this year.
Mike Lavigne, an Austin-based public relations specialist who is treasurer of the Texas Poker PAC, a group recently created to fight state restrictions on poker betting, said it makes more sense for the government to regulate and tax online card games.
"I don't think they can get the genie back in the bottle," he said.
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Team PokerRoom.com Stands Up to the Pros at World Poker Tour World Championship
Published: 2006-04-25
 LAS VEGAS, NV -- (MARKET WIRE) -- 04/25/2006 -- As the prestigious World Poker Tour (WPT) World Championship came to a close on April 24, a group of 19 players from Team PokerRoom.com successfully won a combined $175,475, an indication of their collective skill, determination, and future success.
Team PokerRoom is a group of more than 100 up-and-coming poker players who represent PokerRoom.com, one of the world's largest online poker sites, in some of the most prominent poker tournaments. Team members duke it out for available spots at major land-based tournaments through online qualifying matches.
The next major competition for Team PokerRoom is the World Series of Poker, scheduled for July 28 - August 10, 2006, at the Rio in Las Vegas. Team PokerRoom members currently are vying for spots in the tournament.
Over the weekend, 19 of the team's members competed among 605 of the world's top players. Team PokerRoom's frontrunner was Nadeem Ahmed. The UK-based Ahmed earned an impressive $87,875 for a 28th place finish -- in the top five percent of competitors. Another Team PokerRoom member, Carl Olson, a Seattle resident, exited the tournament in 64th place picking up $43,935.
"I'm thrilled to have succeeded against so many top-rate competitors," said Ahmed. "Beyond the tournament, I'm proud of my participation on Team PokerRoom. Playing online has been terrific training because we can strike up a game any time and we're exposed to so many different hands. The more hands you play, the better you become. The team approach has helped us all grow as poker players."
Team PokerRoom includes players ranging from a Texas-based sports apparel sales representative to California-based investment banking analyst, Jim Davenport, who recently landed an exclusive $250,000 PokerRoom.com endorsement deal in early March 2006. Davenport placed 125th in this tournament and is expected to participate in 12 additional tournaments throughout the year.
"Our goal is to inspire players to grow from amateurs into star professionals, and it was certainly clear at the WPT Championship that our players have what it takes," said Glenn Cademartori, spokesperson for PokerRoom.com. "Poker is a game of strategy, skill and determination. We enable our players to strengthen their skills 24/7 in a fun, secure and professional environment."
ABOUT POKERROOM.COM
Safepay Int S.R.L is the operator of PokerRoom.com and CasinoRoom.com and part of the Ongame Group, which has been in business since 1999. The PokerRoom.com site and games have been developed and maintained by staff with genuine interest and knowledge of poker, making it one of the largest poker sites in the world. www.PokerRoom.com
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