Gambling Blog

Casinos and poker tournament organizers will have to report players’ winnings to the Internal Revenue Service under new legislation due to come into effect early next year.

According to an announcement from the US government, tournament sponsors will be legally required to report winnings in excess of $5,000 to the tax authorities in a drive to clear up the grey areas within the industry over the issue.

At present, some confusion exists regarding whether or not tournament sponsors who hold money for poker players are obliged to report winners and withhold taxes on them.

The IRS said in a statement that the initiative would “clear up confusion about the tax reporting rules that apply to poker tournaments”.

The news comes soon after the IRS announced that it would not follow through on plans to collect an automatic 25 per cent tax cut on any poker winnings obtained at a live tournament with a prize of $5,000 or more.

Given that the new legislation means casinos and gaming operators will not be responsible for collecting taxes but simply reporting any winnings, the move is likely to be welcomed within the industry.

Poker legend Doyle Brunson’s gaming website has announced that it has started accepting US-based players for the first time since the passing of the Unlawful Internet Gaming Enforcement Act.

DoylesRoom.com will once again allow US players to try their luck for real money, with the website complying with the 12-state exception rules that its software provider, Microgaming Systems, currently has in place.

This means that Illinois, Indiana, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, Utah, Washington and Wisconsin will not be switching platforms due to the individual laws in place, with gamers in these states still only able to play for fun, not money.

“The key reason DoylesRoom.com initially pulled out of the states was the safety of our player’s funds mostly due to the processor pullouts after the signing of [the UIGEA],” said a spokesperson from DoylesRoom

“Things have now stabilized. There are promising signs from lobbying efforts in Washington  DC , and most importantly, the availability of processing options for the players that will ensure the safety of their funds.”

Also known as Texas Dolly, Brunson has twice claimed the World Series of Poker crown in the course of his 50-year gambling career.

Despite much bravado in public, the US have agreed in principle to compensate a whole host of gambling companies with regards to their “illegal anti-gambling laws”.  As we approach Monday’s deadline for settlement it has been revealed that while the only really strong case currently on the table is from the twin islands of Antigua and Barbuda, the European Union are also looking to claim $100 billion a year in compensation!

While the Antigua and Barbuda case for  “only” $3.4 billion in compensation has been upheld through a number of courts and appeal courts, there is still no sign of an official settlement, although the US have announced plans to abide by the World Trade Organisation (WTO) rulings.  There are many more compensation claims in the pipeline and it seems as though the US authorities may well look to do other deals outside of the control of the WTO.  But why are the US even considering compensation claims, when they have been so vocal in their support of the anti-gambling laws?

 In reality this all boils down to short term pain for long term gain, because if the US authorities do not abide by the WTO court rulings then there will be further sanctions against the US.  The European market in particular is stronger than ever before, and the ongoing changes within the EU have given more power to the MEPs.  The power of the WTO has also increased over the last few years as more and more countries join the association.

While the US anti-gambling laws may offer some protection to their domestic gambling industry, they look like being forced to payout massive compensation packages to various parties.  Many are now asking whether the act was worth it, or has it just alienated many of the US’s trading partners?

Following on from the news that Atlantic City experienced a late summer slump in gaming revenues and visitor numbers, some of New England’s leading gaming operators have also reported reverses.

Both Foxwoods Resort Casino and Mohegan Sun suffered a drop in slot machines revenue over September.

According to the local newspaper, the Connecticut Day, while Foxwoods took in $67.2 million, its net slot win was down by 2.6 per cent over month.

Likewise, the Mohegan Sun raked in $77.3 million though its slots revenues were down by 1.2 per cent on the previous year’s results.

Commenting on the results, the newspaper quoted Mohegan Sun president Mitch Etess as saying that the drop was more bearable by the knowledge that their Atlantic City counterparts had experienced even worse results.

He added: “The dynamic of the casino market is going to keep shifting in New England as Massachusetts makes a play for casinos and new entrants like Twin River in Rhode Island and Yonkers Raceway in New York continue to compete with Connecticut.”

Over the last few years we have seen many areas of business jumping onto the Poker band wagon, trying to pull in a few extra dollars for themselves.  One industry which has been very active in this area is the Games Console industry where we have seen the emergence of the Playstation 3, the Xbox and the Nintendo Wii to name but a few. 

All of the main games consoles have Poker games available for their fans, but do they really hit the spot? Can they help in the move to “real” Poker? Do they catch the tension of a full blown Poker game?

The chances are that if you ask somebody who has played a Poker console game but not played a “real” Poker game, they would probably be full of praise for the better Poker games, but would you get the same answer from a “real” Poker player? In summary……no

If you are using the console Poker games for fun and laughter, then they have a time and a place, but if you are trying to capture the atmosphere, the tension and the drama then you will probably be sadly disappointed.  Unfortunately, there is no replacement for the buzz which many gamblers get when they have money at stake, when they are pitting their wits against the best around.  This type of tension and atmosphere is almost impossible to recreate on a console game.  But can they teach you how to play the game?

There is some mileage in actually using Poker console games to teach yourself the rules and etiquette of Poker, although why not try one of the “fun money” online sites where you will actually be playing with real Poker players, walking, talking human beings.  These are the people you will come across when you cross over from console Poker to the real deal.  Console Poker games might be fun, but they don’t quite capture the atmosphere and feeling of a “real game”.

The United States Playing Card Company (USPC) has announced that Phi Dolci will be taking over as its president as it continues its work to promote the country’s leading brands in the sector.

Mr Dolci has a solid background in brand marketing in addition to a strong business mind, making him the ideal choice to carry the organisation forward as it works to deal with the booming online card playing industry.

Speaking about his new role he said: “It is incredibly exciting to be part of an organization with classic brands such as Bicycle and Bee that have been part of people’s lives for over 100 years. I am looking forward to contributing to and building upon the strong foundation at USPC.”

In other card-related news, a Pennsylvania judge ruled that poker is a game of chance rather than one of skill.

The decision from the Pittsburgh court goes against the views of most experts and even politicians and will make it easier for authorities to clamp down on the game in the state.

While there are many ways and places where you can gamble all day and everyday, it seems as though the clever gamblers, the ones who make the big money, know when to walk away.  As anyone who has gambled will testify, you can often become embroiled in a “bad run”, something which many find hard to break out of, but is there really any such thing as a “bad run”?

For those who have had bad losing streaks, there are probably a number of common occurrences which include :-

• They happen when you perhaps need money the most.
• They always seem to happen when you are near to the bottom of your “pot”.
• They can often appear after big wins, when many increase their stakes.
• They can be very difficult to get out of!

When looking at “bad runs” there are probably two main issues to consider, the odds of you being right or wrong and your state of mind when gambling.  There is a school of thought which says that many people actually bring on their own “bad runs” because of the pressure they may put on themselves, brought on by a number of factors.

The facts are that at some stage in your gambling career you will have a run of losers, but as we mentioned above, it seems that those who make the best returns are the ones who walk away and try another day.  Have you ever been in a “bad run” and kept trying and trying to win your money back? Did you feel the pressure rising? Did you make decisions that you would not normally have made?

What can start off as just a couple of loses can soon escalate in your own mind and before you know where you are, your bets are getting bigger and bigger and you are taking more and more risks.  If you are ever in this situation, you need to walk away, calm down and comeback fighting another day, as there are some situations which become so clouded that often you cannot see the “woods for the trees”.

Temperament has a massive part to play in any gambling career!

Over the last few months it seems that each days has brought us a new betting scandal, rumours of match fixing and general bad news for many sports, and the betting industry.  Despite the fact that millions of pounds has been poured into the surveillance side of the industry, and many would be “fixers” have been named and shamed, the cases appear to be very difficult to prove in court.  So who will pay for money lost on “fixed” events?

The gambling industry as a whole, and in particular the sports betting inside, has done much to put their house in order of late but it just does not seem to be happening.  However, if as seems likely at some stage one of the high profile court cases is proven, what will happen to bets wagered on the events in question? Will the average gambler receive compensation? Will they have recourse back to the courts? Who really is liable?

As this moment in time the industry and authorities seem to be concentrating on trying to secure a whole range of convictions, but at some stage the subject of compensation will be mentioned.  It just takes one gambler to take the issue to court and it could potentially blow open the whole gambling industry.  We could literally be talking about billions of dollars of money which has been taken on “fixed” events, and while the gambling sites and bookmakers were unaware of this, they would surely be the first port of call for any disgruntled gambler.

If such a compensation claim did go to court, there is no historic ruling to compare the situation to and it is unclear how the authorities would react.  Would they take the side of the customer? Would they take the side of the bookmaker? Or would they even pursue the authorities running the sports in question?

At some stage the blame game is sure to kick-in, and it will be interesting to see in which direction it moves!

Despite much press coverage and warning to the industry it appears that there has been a resurgence in online gambling in the US, only companies such as 888 Holdings and Party Gaming are not involved. It has been shown that exactly one year to the day that President Bush signed the act banning online gambling, the US gambler is now being tempted by companies based in some of the more exotic areas of the world, with no guarantee of being paid for that big win.  So has the act worked?

If the figures are correct it now appears that much like the famous Prohibition act in the US, online Poker and the like has been “pushed underground” and the Unlawful Internet Gambling Enforcement Act is just not working.  So what will happen next?

While the recent ruling by the World Trade Organisation that the US act was unlawful and against the principles of free trade has brought the subject out into the open, it appears that the US authorities are dug in for the long term.  President Bush (and many other government officials) have placed great emphasis on the fact that they are doing this to protect their people (and some may say their industry?) and an about turn now would be very embarrassing.

Only last month there had been rumblings that the act would be repealed after many of the more prominent online websites announced they were in talks with the US authorities about some form of settlement,.  It now seems that this settlement is in effect for back taxes, with little chance of an immediate lifting of the overall ban.

Quite where the US authorities go from here remains to be seen, as it is the unregulated end of the online gambling market who are managing to slip under the net.  Unfortunately many US online gamblers are unaware that these companies are unregulated, and the chances of receiving settlement of that big win are no where near the same as before the ban. Now that is a major gamble in anyone’s eyes!

Atlantic City is on course to see a five per cent fall in visitor numbers in comparison to last year after a quiet September, the latest figures released by the New Jersey Casino Control Commission have shown.

Last month casino revenues fell by an average of 10.6 per cent when compared to the same month in 2006, with casinos in neighbouring New York and Pennsylvania also suffering as more Americans feel the economic pinch and cut back on their gaming activities.

Slots in particular are falling out of fashion though poker remains popular, buoyed by the glamour of the televised game and top end tournaments, such as the World Series of Poker.

“In my opinion, the slot decline was greater than expected,” Dennis M Farrell Jr., a gaming analyst at Wachovia High Yield Research, told the New Jersey Courier Post.

“Table game revenues have cushioned the blow all year but the table game hold was lower,” he added.

According to the figures, slot revenues in the city fell by 12.6 per cent over the month, with the Tropicana casino seeing a fall of 23 per cent, while table revenues dropping by five per cent.

Despite the decline, MGM Mirage clearly has faith in Atlantic City, having recently unveiled plans for a new $5 billion resort to be built there.

Whether you are gambling on the horses, football or a tennis tournament, there will always be a favourite, and more often than not the favourite will be “red hot”, offering very short odds for your money.  So how can you try to lengthen your odds a little, and give yourself the chance of a bigger hit?

Unless there is very small field or number of options, the chances are that while possibly “red hot” in the betting market, you should be able to get at least evens on your money with a favourite bet.  So how can you use this to your advantage?

Imagine if you were in the situation where you had a tip for a winner at say 20 to 1, or you had done your homework and spotted something which the market seemed to have missed, but the favourite was your main obstacle, the one that could spoil it all.  In this instance it would probably be best to give yourself some kind of insurance, by using the favourite as your backup, and putting a few pound on your hot tip.  So how exactly does it work?

Let say the favourite was evens and your “tip” was 20 to 1, you may like to consider the following :-

Place a £10 win on the favourite at evens = potential winnings of £10

Place a £10 win on your tip at 20 to 1 = potential winnings of £200

If your tip comes in then you will walk away with a profit of £190, i.e. the £200 win, less the £10 stake on the favourite.  However, your insurance would kick in if the favourite won, with the £10 win from your favourite bet covering the £10 stake on your tip. 

Many people fall into the trap of thinking it is crazy to bet on more than one outcome in a betting market, when in fact you can cover yourself and in some instances gives yourself an insurance to fall back on.  Gambling is all about strategies…….

The proliferation of slot machine games across the Ohio looks likely to come to an end after the state’s authorities voted in favour of a ban.

Under the proposed bill, which will now be passed up to the Senate, cash payouts from games would be banned, as would any games with cash prizes where the house takes a cut of the proceeds, including darts  or  pool.

According to the industry, tens of thousands of slots are in operation in the state’s parlours, bars and horse racing tracks, with many venues successfully getting around the existing laws covering gambling by calling game tournaments.

Skill-based gaming, most notably poker, will most probably be unaffected by the proposed legislation.

According to the Columbus Dispatch, the state senate’s president, the Republican Bill M Harris, has previously signalled his support for such a move, meaning that the ban could come into effect sooner rather than later. 

While many gamblers in the UK may not know it, but while the UK and US are by far the largest horse racing markets in the world, the industry has spread to all corners of the globe.  As you would expect, this increase in horse racing has also seen a massive increase in gambling levels and it is now possible to bet on horse racing 24 hours a day, 7 days a week!

For the UK gambler the schedule goes something like this :-

• 1pm start for the afternoon racing, finishing around about 5pm  - 5:30pm.
• 5pm - 5:30pm sees the start of a range of evening races which tend to finish about 8:30pm - 9pm.
• 6pm sees the start of US horse racing ,which tends to go until about 1am.
• 1am sees the start of Australian racing, which can go on until about 5am.
• 5am sees racing from Hong Kong kick in, until about 8am - 9am.
• then we have racing from South Africa which covers the break between Honk Kong and the start of the UK racing day.

We have seen an array of satellite sports channels come to the fore, with many concentrating on the horse racing market.  When you also consider the vast array of betting exchanges and other gambling sites available, the traditional “punter” will have liquid markets at any time of the day or night.

There have been some major changes in the horse racing industry over the last 20 or 30 years, and these changes have all been aimed at the gambling market, without which horse racing would be dead.  We have seen massive investment, particularly in the UK, with many of the older more traditional courses receiving major revamps, and the introduction of a whole host of hospitality facilities.

It is now possible to have a full day at the races with a bite to eat, entertainment and horse racing - what more can you ask for?

The board of the gaming giant MGM Mirage have given the green light to the proposed development of a major casino resort project in Atlantic City.

The MGM Grand Atlantic City will be built at a cost of up to $5 billion, not including the cost of the land at the Renaissance Pointe, and looks set to be one of the finest gaming resorts in the world.

According to the plans released by the group, the new project will see three separate and strikingly unique towers be constructed next to one another and boasting a total of more than 3,000 rooms and suites.

Below the luxurious suites, guests will be able to make use of the largest gaming floor Atlantic City has ever seen, complete with 5,000 slot machines, 200 table games and a state-of-the-art poker room.

There will also be a variety of restaurants, nightclubs and bars as well as a 1,500 seat theatre which is guaranteed to draw in some top names.

“Our company has carefully considered the possibilities for our landholdings in Atlantic City,” said Terry Lanni, Chairman and CEO of MGM Mirage.

“We will continue to raise the bar, and by doing so, hope to re-energize the city’s resort offerings and attract a new market of affluent East Coast customers.”

In a move aimed at putting an end to the constant barrage of criticism and rumours of match fixing, the ATP have given all of their members until Thursday to come forward with any allegations or examples of match fixing or illegal approaches. They have also introduced a new rule to the hand book which will force the tennis players to come forward within 48 hours or being approached or receiving information concerning corrupt gambling practices, etc.  A move in the right direction?

The ATP policy is the latest in a long line of attempts by a whole range of sports to clamp down on the corruption which, no matter how small, is having a detrimental effect on sport as a whole, with some sports suffering more than others.  While the moves have been welcomed by many observers, there are some who fear that unless direct action is taken against the culprits then the situation will not improve. 

The 48 hour rule for ATP members in particular is proactive, but the fact that members involved (or aware of) criminal gambling activities have always had a duty to inform the authorities does not seem to have changed.  It is the astonishing cash figures on offer which seem to have turned the heads of the small number involved in these actions, so will the threat of sanctions (which have always been there) be enough to turn the tide?

In reality the only actions which will stem the tide are criminal actions, such as those ongoing and actually in court at the moment.  If the would be “cheats” were to see others hammered by the authorities and receiving criminal records, would this have more of an impact?

There is nothing like the real threat of a prison term, and massive fine, to focus the mind on the job at hand, but will the authorities be able to push through what they believe to be strong cases with regards to fixing claims? Time will tell, but we have been here before on so many occasions…….