November 2008

Monthly Archive

It’s Just a Fantasy - It’s Not the Real Thing

Posted by Glenn Green on 21 Nov 2008 | Tagged as: US Legislation

Yes, I realize it’s an obscure Billy Joel song focused on another of man’s most popular hobbies long before the Internet and our generation’s fascination with Fantasy Sports were dreamed about. The bizarre spotlight recently examines our government’s inane ruling of “skill” aspects of fantasy sports versus “random chance” inherent in online poker and sports wagering. In other words we can intelligently, harmlessly and legally make our points but not our point spreads. Huh?

For example, with the basic premise of NFL fantasy football leagues to accumulate points predicting performance of individual players, the US Department of Justice believes you have the SKILL to judge and predict the sole performance and health of say Adrian Peterson vs.LaDanian Tomlinson each week. Guess so. Excuse me, I mean un-guess so. Conversely, according to NFL & NBA lobbyists, The Federal Reserve and United States Treasury, it’s CHANCE or LUCK for us to predict NFL team scoring outcome. Betting on the Eagles, the Twins, Oklahoma, etc. is a definite no-no.

What’s Not a Fantasy
Let us not waste words covering emphasis and opinion of our economic crisis. Please fast forward to superior articles in the New York Times analyzing what could be the worst outlook spanning 80 years. But ask yourself how could Congress spend two crucial minutes arguing this issue, legislating the reinforcement and rules of the UIGEA (Unlawful Internet Gambling Enforcement Act) during an economic firestorm? Incredibly, it did happen through the power of NFL lobbyists and departing forces in the Bush administration. While leading opponent Barney Frank (D), Chairman of the Financial Services Committee becomes dizzy in disgust, the Congress found time to legislate new principal rules enforcing laws prohibiting banks to process off shore transactions for online gaming. And in a surprise, determined specific language for “games of skill” and what are contests “with predominant chance” plus tossed in a bit of morality to boot.

No, no. They didn’t forget about wagering on our four-legged friends. The red, white and blue judged betting on horse racing is a skill, protecting this USA taxed-based industry and on-line affiliated services from reinforced banking rules. Isn’t it comforting to know all those hours behind the Daily Racing Form are education-based where you can legally brag about hitting the 7th at Belmont to Angie and Rocco? Just remember claiming that 600-1 or more trifecta you cashed on your 1040 come tax time. That’s neither a fantasy nor a skill.

Commissioners of the USA Fantasy Football League
The astonishing priority enforcing UIGEA rules and protecting fantasy sports belongs to the mega power of the NFL and their powerful political base in Washington. President Bush appointee and attorney William Wichterman represents the NFL as a clear opponent of online gaming. He is a close ally of Bill Frist, Republican architect/proponent of the UIGEA and former Senate Majority Leader. As a powerful DC lobbyist, his remaining hours testimony and Bush-supported influence along with several others was instrumental in pushing the rule enforcement through faster than Larry Fitzgerald. While banks wrestle with their own financial survival they now have a seemingly clear distinction following what constitutes fantasy and reality processing credit card transactions. How it will be enforced and flawlessly executed in 2009 is anybody’s guess.

Fantasies for Sale
A startling reality is fantasy sports account for over $800 million dollars of USA revenue. While there is no government study available on the numerous work hours spent on drafts, analysis and stats accumulation, it far surpasses any debatable length of time checking traditional wagering lines for updated sports action. And while poker sites are often unreachable and blocked in the workplace, they also are not comparable. Did the Gov calculate this before ruling what was harmless vs. evil? Did actuaries research fantasy enthusiasts spending an estimated 15-20 hours a week mesmerized by their rapidly growing ‘hobby’?

Who is to control the amount of dollars lost innocently in leagues, pools and goes untaxed compared to “dumb luck” of poker and sports book wagering? Consider this Congressmen: What happens when the popularity of fantasy sports spills over to online off shore sports betting shops? Imagine the potential of big fat prizes morphed into an offer of weekly and seasonal proposition player wagers!

Where your Fantasies Come True
Only the smartest, most skillful fantasy enthusiast can rely on their memory competitively in a league. That’s where the most contradictory, confusing aspect lands. To quote Sir Francis Bacon, “Knowledge is Power”. And the most popular place fantasy folks look to increase their knowledge occurs at a website named sportsline.com or CBS Sportline.com. That’s correct. The very same NFL partner distancing themselves from any sort of gambling participation supports fantasy sports as a number one buddy. Even if you believe Kevin Bacon originated that quote you’d have to agree this is somewhat hypocritical. While no traditional bookmaking lines are available at sportsline.com, the most detailed statistics comparable to Wall Street research are very click-friendly for all fantasy sports.

With lucrative co-op advertising to be made it’s a cinch numerous sophisticated sites will be battling it out to serve fantasy sports junkies in the future including monolith ESPN. That also answers any curiosity why those endless stats continuously update like a stock ticker on the bottom of the television.

According to the government report, fantasy sports are purely non-addictive, ethical fun. But who’s to say in the future how much you could bet and where? It’s conceivable we may have to re-define those “games of chance” and “skill” definitions. Hopefully by then our Treasury would have located $700 billion dollars to save us all and this wouldn’t be an issue on any agenda.

What is a Reality
If this is a harmless endeavor and no one gets hurt, why are numerous lawsuits pending both ways between websites supporting material for fantasy sports and the NFL Players Association? Each side believes they deserve a chunk of the sizable revenue produced. Not to change issues but no lawsuits are pending against Las Vegas casinos who legally conduct sports wagering by any players association or union. It’s quite confusing but presumably having the tax man and tourist income in your huddle makes for an entirely different kickoff.

Whether your game is online sports wagering, poker or fantasy sports there is a disciplined limitation of your time that must be adhered to in respect to your work and your budget. Any argument of what is a game of chance or skill can never be judged objectively no more than a thousand years debating golf is a sport, a game or perhaps both. Furthermore, let’s stop kidding ourselves and realize this new language within the law was instituted to promote a lobbied product for the NFL, NBA, MLB, etc. producing immense revenue and consumer interest. With nothing sensibly wrong with that premise, it is insane to have financial institutions waste time judging coded semantics and paid-off guns argue legality and morality when the bottom line is their own bottom line.

Oh, and did I tell you, I WON MY LAST FIVE FANTASY LEAGUE TOURNAMENTS!! Willing to share my amazing skills with you this season for only $50!! Just a dream I had. Sometimes a fantasy is all you need….

Change Coming for Gaming Legislation?

Posted by Administrator on 07 Nov 2008 | Tagged as: US Legislation

Well the 2008 elections are over and it appears that everyone came out in force, not just gamblers or gays or African Americans or Bible thumpers, but everyone. Many of the supporters for Internet Gaming regulation were re-elected and our President-elect may see the failures of recent prohibitions. But, several of the most staunch opponents for Internet gaming were re-elected as well.

Overall – this election went kind of sideways for our cause. Like a day of $2500 in action where you end up ahead $20. Still this beats going down $500 and we are most likely better off on November 7th than we were on November 1.

Here are some of the key races that were won or lost.

Barney Frank (D-MA) is one of the biggest allies of Internet freedoms and thus a supporter of Internet gaming. Frank hails from the Fourth Congressional District of Massachusetts and crushed Republican challenger Earl Sholley in a landslide. The final tally saw Frank winning by a college football pointspread - 68% to 25%,

Republican Congressman Ron Paul was the co-sponsor of  Barney Frank’s Payments System Protection Act  (HR 5767), which ended in a tie vote in committee earlier this year. Paul represents the 14th Congressional District of Texas and ran unopposed.

Shelley Berkley, a Democrat in the First Congressional District of Nevada, introduced a bill that we support for a study of Internet gambling. (HR 2140). Berkley smoked Kenneth Wagner by a 67% to 28% margin. 

Democratic Congressman Robert Wexler, a poker supporter who introduced HR 2610, the Skill Game Protection Act,  easily won the19th Congressional District of Florida and with a 66% to 27% margin over Republican challenger Edward Lynch.

Washington Congressman Jim McDermott (D) introduced several tax-related measures that serve as companion pieces to Frank’s HR 2046. McDermott’s latest legislation is HR 6501. He had his way with the 7th district garnering over 85% of the vote.

Steve Cohen (D-TN), Melvin Watt (D-NC), John Conyers (D-MI)  and Linda Sanchez (D-CA) all received over 70% of the vote in their districts and Bobby Scott (D-VA) ran unapposed. All of these Representatives support Shelley Berkley’s bill and are considered friends of online gaming.

However, before gambling advocates go and get too excited, several Congressmen who will fight the ‘evils of gambling’ until they are voted out, did manage to return for another term.

Bob Goodlatte (R-VA), one of the architects of so many pieces of anti-gambling legislation and co-author of the UIGEA won handily in the 6th district in Virginia with a 25 point margin of victory.

Conservative Republican and arch enemy of Barney Frank and the rest of the intelligent world, Spencer Bachus from Alabama ran unopposed. This representative has been the main opponent of Barney Frank’s efforts to repeal the UIGEA. In House sessions on the subject, Bachus will bring up a late teen who killed himself because of his gambling debts and the letters from the major sports denoucning betting – everytime. He is a ranking member of the House Finance Committee and has great influence over the Republicans in it. Perhaps it is time for gambling interests to prop up a candidate in this district to oppose Bachus . . .

Republican Jon Porter was a supporter of Internet gambling as he too introduced a bill to study the effects of Internet gambling. Was, because he lost to Democrat Dina Titus by a mere 5 points in the 3rd district in Nevada. This race featured 6 candidates all getting votes. We can only hope that the newly elected Democrat is a friend of Shelley Berkley and Internet gaming. 

Home to staunch gaming opposition in the past, Arizona had no elections for Senate, though they did vote in Democrats 5-3 in the House. Unfortunately, Jon Kyl, who was gaming’s enemy #1 for years, is still in his Senate seat. And, by losing his bid for the Presidency, John McCain will return to the Senate and most likely continue to toe the party line opposinng gambling.

Of all of the operators we spoke with since Tuesday, everyone expressed positive feeling towards our newly elected President. As one operator said, Obama can only help our cause. He certainly can’t be worse for us then Bush.” However, don’t expect Internet Gambling to be on the list of things to do in the fist 100 days. After the economy, the war(s), the healthcare system and every other issue facing our president and new Congress are looked at, gaming may see it’s way to the plate.

And now that the Democrats hold an edge in all areas of lawmaking, the House, Senate and Presidency, let’s hope that the new adminstration sees the foolishness of the UIGEA. Let’s urge our new lawmakers to stamp out players like Bachus and move forward to an era of regulation, not prohibition. After all, Change is Coming to America!

Obama by 8

Posted by Administrator on 04 Nov 2008 | Tagged as: US Legislation

Today is the day we gamblers, as with a large majority of this great country, are forced to make a very tough decision on our new Commander-in-Chief. Many of us are not really choosing which guy we want to run the country, but which candidate will cost us less, while protecting our freedoms as Americans.

But, as gamblers, who desire the choice to gamble in our own homes, what we really yearn for is a guy who plays . . . for money, with his ‘finger on the button’. Wouldn’t it be great if a gambler was in the White House? What kind of headlines would be made if he told the Speaker that he’ll be a little late for a cabinet meeting because he has Smokin’ Castro in the seventh race at Belmont! Or have him hurry through a State of the Union, to all of our delight, because the Wizzards are playing and he has the ‘Under’.

This would not be the first President that has wagered a few dollars. Sports betting may be a reach; the majority of previous gambling guys in the White House were card players.

Warren Harding (R), 29th, devoted himself to his regular poker games In the White House more than to the nation’s business. He played the game at least twice a week, and played so regularly with his advisors that they were nicknamed “The Poker Cabinet.” Now this sounds like a President that we could have gotten behind. Harding once gambled away a full set of White House china, ahem . . . allegedly, What a President! And a conservative Republican to boot!

In the modern era, Presidents Theodore and Franklin Roosevelt (D), Dwight Eisenhower ® and Lyndon Johnson (D) were all players. Harry S. Truman (D), 33rd, played. But he was the guy that always annoys you with a strange three card poker departure when playing ‘dealer’s choice’. Apparently, Truman liked to introduce unorthodox variations of the game, employing numerous wild cards. Truman was a real gambler though; he would go on weekend poker junkets on the Presidential Yacht! Often all three branches of government were represented at the poker table. The group would board the ship Friday afternoon and sail the Potomac until Sunday afternoon! What a country!

Franklin Delano Roosevelt (D), 32nd, has always been a president that history has looked upon as one of the greats. He appealed to the common man, brought us out of the depression and played a mean game of 7-Card Stud. Some of the regulars at his games were the U.S. Attorney General, the Secretary of Commerce, the Speaker of the House, and Vice President. You gotta love a whole ticket that plays . . .

Two reasons that my man FDR is the model for the next candidate that is supported by gaming:

  • Justice William Douglas wrote that in 1943, FDR got the name of another Supreme Court appointment at an evening poker game. The President admitted to everyone that he didn’t know who to appoint to the latest vacancy. Someone suggested Wiley Rutledge. Roosevelt declared, “That’s my man.”
  • FDR once went directly from a poker game, carrying his chips, to the radio to make a fireside chat to the nation. Throughout his speech he absently clicked his chips, causing many people to fiddle with the radio sets.

And finally there is Tricky Dick. Richard Nixon (R), 37th, learned to master poker in the Navy This was more than just a way to be “one of the guys,” but, as it turned out, a way to fuel his political ambitions. The $8000 that he took home in the 1940’s, which was a ton of money in those days, financed his first Congressional campaign in 1948, a race he won.

What has happened to the Republican party?

These would all have been candidates that every gambler could get behind. But instead the lesser of two evils awaits at the polling booth later today.

Obama has been quoted as saying the Internet is “a Wild West of illegal activity”, and supports a study of Internet gambling. He also is reputed to be a good poker player, and enjoys playing poker for money. McCain is a cohort of one of our biggest enemies . . . ever. Jon Kyl has proposed more legislation and caused more headaches for the gambling industry and heartaches for the players than any other politician. And, he serves with John McCain representing the state of Arizona. One bright note for the Republican candidate; McCain makes no bones about throwing the dice. He plays craps and has often been known to go against the grain of his party.

Still, Obama leads in the polls and from a gambling perspective is the better candidate for supporting the freedom to play online, with you own money, in your own home. The Democrats seem to have bit more of a clue as to the revenue possibilities and the current impossibilities of the UIGEA. But either way, don’t bother winning much, because Obama will want to redistribute your winnings and McCain may never let you collect.

As far as the election . . . what I am really looking for is a pointspread. Let’s say Obama (-8)