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Written by Thomas Jensen
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Thursday, 31 January 2008
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 The international Internet gambling dispute, potentially valued at billions of dollars, continues. Costa Rica and Antigua separately filed for World Trade Organization (WTO) arbitration on January 28, seeking compensation from the United States as a result of the U.S. withdrawal of its commitment on cross-border internet gambling services. The new arbitration requests could potentially derail the settlement for compensation agreed to late last year by the U.S. and the E.U.
The arbitration filing makes it possible for the E.U. to reconsider its settlement with the U.S. and join the arbitration proceeding, opening up a new phase in the Internet gambling trade dispute.
“The decision by Antigua and Costa Rica to take the United States to arbitration will test the limits of the WTO process and squarely challenge the U.S. resolve to withdraw its GATS commitments,” said Nao Matsukata, formerly Director of Policy Planning for USTR Robert Zoellick and now a Senior Advisor for Alston and Bird LLP. “If the U.S. finds the decision of the WTO arbitrator unacceptable, under procedures outlined in the GATS, it could unilaterally withdraw, creating an unprecedented crisis of confidence in the global trading system. The best solution remains for Congress to pass legislation that would create a legal and regulated framework for online gaming in the United States and for the United States to remain in the GATs schedule to provide all providers legal protection under the WTO.”
U.S. withdrawal from GATS following this new arbitration carries the risk of expensive new sanctions levied against U.S. exports and intellectual property. “If the U.S. withdraws following another adverse arbitral decision, the country would face potential retaliation from all WTO Members affected by the arbitration, a pool of countries including the EU, Canada, and Japan,” added Matsukata. “Inviting sanctions at a time when both the U.S. Administration and Congress are both striving to stimulate an economy on the edge of recession seems foolhardy at best, especially when draft domestic legislation already exists that would create a renewed flow of both business and tax revenues throughout the nation's gaming sectors.”
Lode Van Den Hende, a W.T.O. expert and trade attorney with Herbert Smith in Brussels said, “There is a real possibility that the arbitration body will find that unless the U.S. provides commercially meaningful compensation to Costa Rica and Antigua, it cannot withdraw its commitment on gambling, without risking trade sanctions from the affected parties.”
Costa Rica’s action raises questions about what India and Macao might do as the other nations that have yet to come to terms with the U.S. over the withdrawal of the Article XXI commitment related to cross-border gambling services.
Under the WTO’s GATS Article XXI rules, any country withdrawing its market access must provide compensation to affected countries that maintains a general level of mutually advantageous commitments not less favorable to trade than that provided for in schedules of specific commitments prior to the negotiations. The U.S. negotiated settlements with four of the eight nations seeking compensation - the E.U., Japan, Canada, and Australia, providing compensation, in the form of markets access to U.S. domestic postal services, warehousing, R & D, and technical testing sectors.
Costa Rica, Macao, India and Antigua did not reach an agreement with the U.S. over the withdrawal of its gambling commitment, as the above market sectors offered by the U.S. were of no commercial interest to those countries.
After the WTO ruled that the U.S. had violated trade rules in barring Antiguan online gaming operators from the U.S. market, the U.S. withdrew its WTO obligations with regard to free trade in the gambling area. The U.S. decision to withdraw its market commitments, in order to comply with the WTO, is the first instance of such an action by a WTO member. The action by the U.S. sets a precedent that other WTO members could copy in order to back out of their own commitments once they consider them inconvenient. In turn, the Costa Rican and Antiguan arbitration requests are the first ever in response to a withdrawal of commitments.
It is possible that these arbitration requests will impact the way in which Antigua decides to implement the $21 million per year in trade sanctions it received as compensation for U.S. noncompliance with WTO rulings in the gambling dispute. An option available is for the country to take the compensation in the form of intellectual property waivers.
“It is time for the U.S. to end its hypocritical practices that discriminate against foreign online gambling operators, while allowing U.S. gambling operators to accept bets for certain forms of gambling,” said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative. “Regulation of Internet gambling should be supported as a means to resolve this trade dispute.” |
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Written by Thomas Jensen
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Sunday, 27 January 2008
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 After a successful launch in 2007, BetMarkets, the only global sports betting conference, returns to Vienna, Austria from 31 March – 1 April 2008. Recognising the need for a dedicated event, BetMarkets launched last year as the premiere global conference for senior executives in online and land-based sports betting. The 2007 conference gave delegates valuable insight into all facets of the industry and saw incredible attendance figures thanks to the excellent speakers and extensive choice of relevant topics.
BetMarkets 2008 promises to be bigger and better, with quality networking guaranteed and hours of interactive, lively and informative sessions. Delegates will be able to get involved in debates with important industry speakers and gain the essential knowledge needed to create more successful business development and marketing strategies.
Sponsored by BGT (Best Gaming Technology) for a second year, the 2008 conference offers an intensive learning experience, with an impressive list of high calibre speakers already signed up to the event.
Joe Coughlin, Business Development Manager, Gala Coral Group who was a delegate at the 2007 event said: "Sports betting has been mostly ignored by the major conferences, so it’s great to finally see a conference like Bet Markets dedicated to nothing but this important sector."
Extensive research and expertly chosen topics provides a conference schedule offering delegates a forum to discuss how to better develop a profitable sports betting business in an increasingly competitive environment.
BetMarkets also allows delegates to choose the most relevant sessions to attend for their business, as the conference splits into two streams for part of day one. Stream A focuses on how to efficiently develop a successful mobile betting strategy, webstreaming, customer acquisition and retention via Web 2.0 and affiliate marketing. Whereas, Stream B examines profiting from in-play betting, how to enhance profits by creating efficiencies in technology, how the right environment can increase punter activity and offers top tips for creating a successful online offering.
BetMarkets leads the field in internet gambling industry networking opportunities and with a welcome dinner, drinks reception and party organised during the event, delegates can be sure to network and learn in a dynamic environment. |
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Written by Thomas Jensen
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Thursday, 24 January 2008
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 Income Access is blazing a new trail for affiliate toolkit usability with the latest version of their industry-leading affiliate management software. Affiliates and merchants are invited to sample what Income Access has to offer at the upcoming ICE and CAP Euro affiliate marketing conferences in London, England, at the end of January.
Montreal, Quebec, Canada January 24, 2008 - Several months ago, the Income Access team launched plans to raise the bar on affiliates’ and operators’ experiences with the Income Access software. Drawing from Web 2.0’s clean, friendly esthetic elements and its emphasis on easy access to information, Income Access crafted version 3.0 of their software. Income Access has now released a demo of this latest version, with its official unveiling to occur at the ICE and CAP Euro affiliate conferences, running January 21st to 27th, 2008.
“Our main objective with this redesign has been to ensure our software’s appearance and usability reflects the depth and range of its capabilities as a data analysis tool,” says Nicky Senyard, CEO. “By making the design of the software even more intelligent and pleasant to interface with, we’ve aimed to deliver at-your-fingertips access to information for affiliates and merchants alike.”
Just as Web 2.0 is a better version of the Web, version 3.0 of the IA software is a better way to look at reporting for affiliate marketing. The visual elements of the software have been brought out with use of colours and icons that assist users to quickly find what they’re looking for to carry out the tasks that matter most. Pop-ups have also been minimized to streamline navigation. A softer, friendlier feel has transformed the admin, merchant, and affiliate interfaces into a more enjoyable environment to log in to.
Version 3.0 of the Income Access software also lets users exercise more control over their data by experimenting with several new features. The presentation of reports has been fine-tuned to put the most commonly used reports front and centre, and to fit more information on a single page. In addition, affiliates and merchants will notice that their daily tasks are faster and simpler thanks to scrolling within reports and the ability to highlight multiple rows of data for easy viewing of pertinent data.
“Version 3.0 will make it easier than ever before to access the information you need to make marketing and business decisions,” says Nicky Senyard. “We’ve always used our own experience with affiliate marketing and affiliate management to push our software from one release to the next, and this latest release is the perfect example of how this approach really pays off for the end user. With 3.0, the Income Access software is now more adept than ever not only at reporting data, but at intelligently supporting the most vital functions involved in affiliate marketing with perfected usability.”
Affiliates, operators, and merchants are invited to make appointments with Income Access representatives at the upcoming online gambling conferences to see a demo of version 3.0 of the software. Income Access will be at booth 43 at CAP Euro. To prearrange an appointment time for a demo or a chat, please contact
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About Income Access
Uniquely placed in the affiliate marketing arena, Income Access provides the industry with affiliate software, an affiliate network and affiliate management services. Income Access is built from the affiliate marketing perspective for the gaming industry and powers the affiliate programs of leading brands in Europe including renowned international brands Victor Chandler, Jackpotjoy, Lasseters, Sporting Bet Europe, Unibet, Ladbrokes, Dublin Bet, Centre Bet, Wager Profits and Bingo.com. Established in 2002 and based in Montreal, Canada, Income Access is operated by a team of seasoned affiliate marketing professionals in online gaming. Income Access is the online gaming industry's trusted partner. |
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Last Updated ( Thursday, 24 January 2008 )
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Written by Thomas Jensen
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Friday, 21 December 2007
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 The last thing the online poker industry needs is another scandal but at least 4 poker players of a former Playsafe Holdings licensee are not going to have a Happy Holiday this year after being pillaged by a Viking. It turns out that the publicly traded online poker company and turnkey software provider from Norway (Symbol: PLAY on Norwegian OTC) still seems to be stiffing players and at least one licensee with a second licensee reporting being stiffed as well. Playsafe Holdings owns ActionPoker.com, TigerGaming.com and online poker affiliate website WagerProfits.com.
Point-Spreads.com reported back in August 2007 that a former online poker licensee of Playsafe Holdings was getting stiffed on commissions/rake while online poker players were being refused payments. After our report circulated throughout the internet on several popular internet gambling websites, the licensee received the following instant message from Playsafe COO Ben Johansen on August 31st, 2007:
"You will receive a check for the commission earned on XXXX but client balances are my responsibility and will remain with me. Good Luck!"
Translation we will not be paying you, your players balances. To date, the licensee has not received the promised commission/rake and slow and no pay complaints are beginning to pile up.
"Our players were forced by Playsafe Holdings to re-install a Action Poker client on their desktops once we moved to a new poker network," stated the new owner of the first licensee being stiffed for close to one year. "So now our poker players are playing at Action Poker and are asking us to pay them instead of the people with their money, Playsafe! Not only does this cause issues for our brand, it is tying up our support team."
Point-Spreads.com was able to get two stiffed online poker players paid earlier this month. One of the online poker players had this to say about our efforts on his behalf:
"TJ you must pack some clout my friend as he was full of apologies. My family and myself would like to thank you in advance, there will be a couple extra gifts for the grand kids this Xmas."
We were very happy to receive this email and it appeared that Playsafe Holdings was moving in the right direction, however Point-Spreads.com has recently learned that the second player who originally requested a wire transfer had his balance transferred to Action Poker instead of the promised wire transfer. One of our biggest original concerns with Playsafe Holdings is that they appear to be using licensee's marketing dollars to grow their client base by stealing their licensee's databases instead of spending money on marketing dollars themselves.
Our fears seemed to be put at ease when Playsafe COO Ben Johansen emailed us on September 19th, 2007 saying that "we don't accept US wagers" so learning that the second player from Chicago was placed in ActionPoker.com was a shock.
At least four other slow and/or no pays are being reported to Point-Spreads.com this month, making for a total of 7 online poker players getting the shaft. Here is a copy of one of the most recent email correspondence we have received from a disenchanted online poker player:
"Hello. I play at Action Poker and I've been waiting for my payout of $2,000....I know many players are in the same situation. What is your advise? Should I take legal steps or wait a bit more? And what can be done legally to protect the customers' rights? Thank you for your cooperation."
Point-Spreads.com has attempted to contact Ben Johansen as an open line of communication was thought to have been opened but all attempts have gone unanswered in the last 15 days. Meanwhile, Point-Spreads.com has learned of a second licensee having the same no pay experience with Playsafe. In an email correspondence, the second licensee stated that "Jeremy has been stalling me since April”. Jeremy Brenes is the Licensee Manager of APG Enterprises Ltd of Costa Rica, a Playsafe Holdings company.
Online poker players, licensees, potential licensees and shareholders of Playsafe Holdings back in Norway should be made aware of what is transpiring hence the reason we are releasing this report. Anyone involved is urged to contact Point-Spreads.com immediately. Also, if any additional licensee's of Playsafe Holdings are experiencing problems obtaining commissions/rake should contact us immediately as well. |
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Last Updated ( Friday, 21 December 2007 )
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Written by Thomas Jensen
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Thursday, 20 December 2007
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 A formal complaint filed today by European online gambling operators for claims of discrimination and violation of international trade law by the United States should encourage U.S. lawmakers to regulate Internet gambling. Legislation introduced by Representative Barney Frank (D-MA), the Internet Gambling Regulation and Enforcement Act, would regulate Internet gambling and resolve the pending action by creating a level playing field among domestic and international operators.
"This complaint complements the current legislative initiatives led by Representative Frank,” said Nao Matsukata, formerly Director of Policy Planning for USTR Robert Zoellick and now a Senior Advisor for Alston and Bird LLP. “It is consistent with the effort to establish a non discriminatory market in the United States."
The action was filed under a provision of the European Union’s Trade Barriers Regulation by the Remote Gambling Association (RGA), which represents the largest remote gambling companies in Europe. RGA asserts that the U.S. Department of Justice is in violation of international trade law by threatening and pressing criminal prosecutions, forfeitures and other enforcement actions against foreign online gaming operators while allowing domestic U.S. online gaming operators, primarily horse betting, to flourish.
“We applaud the efforts of the RGA and agree that Congress should take action to end the current discrimination against foreign online gambling operators,” said Jeffrey Sandman, spokesperson for the Safe and Secure Internet Gambling Initiative .
The RGA complaint comes in the context of an increasingly contentious trade dispute over online gaming resulting from Antigua’s World Trade Organization (WTO) victory over the U.S. earlier this year. After the W.T.O. ruled that the U.S. had violated trade rules in barring Antiguan online gaming operators from the U.S. market, the U.S. withdrew its W.T.O. obligations with regard to free trade in the gambling area. Earlier this week, the European Union and several other countries, including Japan, Canada, and Australia, agreed to accept compensation from the U.S. for the withdrawal of market access. However, the trade concessions do not address charges against the U.S. for discriminatory and protectionist practices against foreign online operators that took place before the withdrawal of the commitment.
"The U.S. decision to pursue the compensation negotiations with these countries was unfortunate,” Matsukata said. “This filing by the RGA is a welcome development; it is an effort to restore integrity back into the international trading system."
“It is unfortunate that the Administration has unilaterally acted to resolve the WTO Internet gambling dispute by continuing to block E.U. operators from accessing the U.S. market,” added Sandman. “It is time for the U.S. to end its hypocritical practices that discriminate against foreign online gambling operators, while allowing U.S. gambling operators to accept bets for certain forms of gambling. Regulation of Internet gambling should be supported as a means to resolve this trade dispute.”
A provision of the E.U.’s Trade Barriers Regulation allows any E.U. company or association to complain against obstacles to trade in other countries, which the E.U. must then investigate. After the investigation, the E.U. could pursue discussions with the U.S. to find an appropriate solution to end the discrimination. If the parties cannot settle the matter themselves, the E.U. could bring a case against the U.S. to the WTO on the claims. |
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