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WSEX payments are being processed more quickly but the company still owes $653,000

World Sports Exchange (WSEX), one of the most trustworthy offshore sportsbooks for most of the 2000s ran into payment issues not long after the UIGEA was passed. It’s uncertain what led to the payment issues but around 2008 the company found itself unable to pay players in a reasonable amount of time. In fact the slow pay often went to no pay and some customers still claim they are waiting for payments they requested over a year ago.

WSEX customer service has blamed the slow pay on the inability to secure sufficient payment processors who can issue checks that will be accepted by U.S. banks. As ridiculous as that may sound there may be some merit to their excuse. The country of Antigua effectively became a pariah to the U.S. banking system for 2 main reasons. First, Antigua’s WTO challenge against the U.S. over gambling services caused the USTR to list the country as “rogue” thereby causing U.S. banks to flag transactions from Antigua. Secondly, the failure of Stanford Bank after the SEC charged the company with operating a ponzi scheme had world banks questioning the legitimacy of the Antiguan banking system. Prior to 2007, payments were a fairly moot point to American customers since they predominantly used NETeller for deposits and withdrawals. But once NETeller cut off American customers and once Western Union began to blacklist gambling sites after it was clear the UIGEA was going to demand Western Union to take action, payment options dwindled for American customers to checks cut by 3rd party processors. Not surprisingly those processors could only post so many transactions at a time and some of WSEX’s payment processors, like one in Cyprus ran into trouble with the law, thereby eliminating even more payment options. Moreover, to stave off suspicion the amount for the checks from the processors had to be limited to $3,000.

While that may have accounted for much of the delay there is still suspicion that much of WSEX’s problems lay with bad investments (such as Matchbook and Fantasy Sports Exchange) and there is also speculation that the company lost a lot of money in the Stanford Bank scandal. The company has lowered costs dramatically by cutting staff and consultants and also selling off assets. And there has been a wide spread rumor that customers owed money have become partners in the company in exchange for waving the amounts owed. Many of those partners have also apparently poured money back into WSEX to clear up some of the payments. Sportsbookreview reports that 110 customers are still owed about $653,000 in unprocessed withdrawals but many customers are also saying payments are starting to come in more frequently. In fact one customer owed over $8,000 stated on the posting forums that he received payments for just under $700 each week for the last 2 months. One player that contacted OSGA is approaching a one-year wait on his 2K, but with OSGA involvement, he did get half of that back in November.

Someone close to the company who no longer works there stated that WSEX has set a goal to pay back everyone ASAP. but their primary concern is to ensure that new post-ups get paid first. Consequently newer clients are receiving payments almost immediately while the ones waiting over a year are ‘on the list’ but get delayed if a new post-up requests a payment. Obviously the company realizes that new customers will continue to play and deposit if they’re paid while the ones waiting for months have probably given up on the company and won’t deposit again even if they are paid. The source also said that customers who send requests by other means like NETeller, Moneybookers or Instadebit can get their money quicker since it doesn’t go through 3rd party processors. It’s also an indication those clients aren’t American which could be vital to the company’s future if they ever go the way of The Greek or Pinnacle and cut off American customers.

The news is hardly comforting, and the company surely deserves the D- rating they have currently at SBR and the downgrades from OSGA, but at least there is more hope today than there was even a few months ago.

It started with a call right before the holidays that a player had $2000 stopped by Western Union. Apparently the receiver was on a ‘blacklist’ of some kind. We did not find this to be incredibly odd as over the last few years this has happened occasionally, perhaps a couple of times each football season. Then another call came in, this time the amount seized was $2500. Over the New Year’s weekend, an email came in from a sportsbook that a player of theirs had the same thing happen. His cost: $2000. Then came in a big one, this player had sent 2K, twice , within fifteen minutes of each other. Again, the name sent to was flagged by Western Union as being associated with fraud. In the end, he was out $4000.

In the rules from Western Union,”You and Receiver represent that your use of Services does not violate: (a) any law, including, without limit, laws relating to money laundering, illegal gambling activities, support for terrorist activities or fraud”. This gives the company the opportunity to stop cash sent for the purposes of Internet gambling. And they are now aggressively going after funds for gambling. If nothing else, they get to keep hundreds of dollars in fees. And even if the player does recover the funds, the fees will never be returned.

And online gambling companies do not take responsibility. One sportsbook owner told us that “until I actually get that players money, it’s not my responsibility.” Though this may seem alarming to players, it is reality. With all of the other hurdles that Internet gambling companies have to overcome with the collection and payment of money to US players, it is not surprising that this is the stance that most companies take. However, almost all companies are also sympathetic to some degree and many will put the fees that Western Union confiscates into player accounts. We have heard of this from 3 different outlets.

So what did these players do? They lied to Western Union about the reason for sending the money and got it refunded. Except for the player who is out the most, 4K. The name that he was given was not just associated with ‘fraud’, it was also linked to the big evil for Western Union, illegal online gambling. He has a big problem now that (hopefully) will get resolved.

The big question from players has been, “Is it safe to send money with Western Union?” The answer is the first method ever used for sending money to an offshore gambling company is still a viable option. The above problems all occurred with players sending 2K or more. The biggest problem, involves the most money. We have not had a players deposit get flagged for a couple of hundred dollars. One very reliable source confirmed our suspicions, “Western Union is cracking down,” we were told. The source added, “The magic number with Western Union and Moneygram that gets flagged is $1500”.

What is shocking is that the gaming companies know this is happening, but a quick perusal of the top gaming websites shows a maximum deposit using these methods at $2000-2500 at most outlets. This high number is understandable since the operators don’t take responsibility for the transactions and most deposits do not get caught in Western Union’s web.

The lesson to be learned here is that the UIGEA is continuing to make the transfer of money more and more difficult. Due to the law Western Union had to do something, and they are now watching, closely. Players who use this method should consider lowering their deposit amount when making transfers or find another method that will work for them. Players who send smaller amounts really have nothing to worry about and we have not heard reports of Western Union stopping a couple of hundred dollars.

In its 9th year, the OSGA College Bowl Challenge again had contestants pick 32 College Bowl games against the spread. The spreads were set at half points to eliminate ties. The early Bowl games were worth 1 point but contestants still had a chance right up until the BCS Championship game – BCS Bowls were worth 2 points and the BCS Championship was worth five. In fact, the players who were at the top of the leaderboard for most of the contest ended up missing the prize pool entirely, as all five of the top leaders had LSU being crowned as BCS champion. Instead, ‘JNoss’ and the other prize winners came from as far as 12th place to get in on the prizes.

The contest had several anomalies this year. Four players tied for the top spot on the leaderboard with 27 points and 5 players tied for 5th place with 26 points. Since there was a 4-way tie for first place, we had to go to the tie-breaker. The contest rules state that the player who picks closest to the final score of the BCS Championship game without going over would be crowned champion. The second anomaly was that all but one contestant (who finished 59th) in the Bowl Challenge had their total go over the final score of the game, 21-0!! So, we went with the closest to the final score to determine the winner. The total of 28 was the closest and thus JNoss was determined to be the overall winner! The other three contestants that tied for first place were awarded prizes 2-4 based on their total in the BCS Championship game as well.

This year was also peculiar as we saw the most women EVER hit the top of the leaderboard. ‘bcs wizard gal’ took 2nd place, ‘dp24’ took 3rd and ‘teresad’ and ‘ncyjohnson’1 both tied for fifth place.

The contest oddities continued with 5 players tying for 5th place. The fifth place prize was a FREE $50 bet at OSGA Elite-rated Diamond Sports. Since there was a 5-way tie for fifth place, we would normally go to the tie-breaker. But Diamond Sports stepped up to the plate and offered ALL of the fifth place finishers who tied with 26 total points a Free Bet. This made ‘tks777’, ‘gpatek1’, ‘ncyjohnson1’, ‘KKoz9’ and ‘teresad’ ALL eligible WINNERS of the $50 Free Bet at Diamond Sports.

‘This years’ BCS Contest had several twists and turns and having ‘Bama as the BCS Champ really turned the standings on their head,” stated Jim Quinn from OSGA. “To have such a close contest, with a very different leader board on the last day, than any other day, made this one of our favorite years running the contest.”

This has been another great year for the OSGA College Bowl Challenge and we congratulate everyone who played (except our own OSGAJim who only picked 12 winners and finished in 109th place). We also would like to thank the contest sponsor, Diamond Sports, who really came through for players with the extra Free betting accounts. OSGA is looking forward to their ‘Members Only” SuperBowl contest and the annual NCAA Tourney Contest in March.

The OSGA sponsors several football contests that run for the full football season. This year OSGA’s popular Progressive Pick ‘Em saw no one able collect the weekly ‘Progressive’ prize by picking all games on the board correctly. This year only three weeks saw players with only one loss, but that loss meant the $100 Progressive jackpot built for another week and a correct card for this Sunday’s games would have paid $1700. ‘JohnnyB’ was just one game away in the final week of the season and lost out on the $1700 Prize with his selection of Denver. Instead, ‘snurker’ collected 50% of the pool for going 178-78 over 17 weeks. ‘PD’ and ‘rick’ split the next prizes as they tied for second place and collected $197.50 each. ‘wolverine’ came in fourth collecting $170 and ‘swampboy’,  who won the 2010 Progressive contest, finished in 5th this year with a prize of $85.

The 2011 OSGA Progressive Pick ‘Em was two contests in one! Each week there was also a prize winner of a $100 free betting account at OSGA Elite-rated BetOnline.com. Every week the player with the most wins for that week was given a $100 Free Play.

“This year the OSGA ran a great contest and we always support thier efforts in the gaming community. We handed out Free Accounts to over a dozen new players and with 17 different winners throughout the season, the OSGA Pick ‘Em was terrific for everyone involved.” said a BetOnline spokesperson.

While the Progressive Pick ‘Em is a contest that features a large cash prize, it also is a tough grind where just one bad week can knock a player from the top of the standings. In fact, no single player finished atop the standings more than one week in the contest and the overall winner never captured the single week prize.

“This contest again went down to the very last week as it was a hot year for several players ,” stated Jim Quinn from OSGA. “Last years’ winner would not have even placed in the Top 10 this year,” added Quinn.

This has been another great year for the OSGA Progressive Pick ‘Em. OSGA is looking forward to crowning a winner in their their 9th Annual Bowl Challenge next week and their annual NCAA Tourney Contest in March.

Adelson’s stated reasoning according to the Las Vegas Sun is that “he is morally opposed to web gaming, that technology to bar minors is untested and that he believes it will be an unnecessary distraction in 2012.” However, sources I have spoken to who are well in tune with all the developments indicated the real reason Adelson is opposed to legalized online poker is fear of the competition. The American Gaming Association (AGA), which represents numerous casinos such as Caesars and the MGM, has indicated that they now support online legislation provided it only deals with poker and not other casino games. Caesars was hesitant to support online poker when it partnered with 888 Holdings after Wynn and Station Casinos partnered with Full Tilt and PokerStars respectively, but, after Black Friday, Caesars now finds itself in the driver’s seat. 888 Gaming is in the country’s good book since it pulled out of the U.S. market after the passing of the UIGEA and paid off the government’s “penalty” for the time it did allow American accounts, while Full Tilt and PokerStars are cut off to the American market forever. Thus, Caesars is ready to go with its poker product in partnership with 888 Holdings while the other casinos have to find new dancing partners. And the Sands never prepared for online poker whatsoever. No doubt Adelson realizes that if the law is passed Caesars will have a huge head start on the Sands and it is unlikely the Sands would make much headway even after it finds a company to partner with. Not surprising, therefore, Caesars and the AGA are anxious for the bill to pass sooner rather than later. But Caesars is also adamant that any new law only deal with poker since they want a federal law for other forms of gambling that Caesars undoubtedly will want to run that on their own.

Barton is very eager for the bill to be passed before the next election and has even indicated he may consider attaching it to other legislation before the year is out, similar to the way Bill Frist and the Republicans were able to shove through the UIGEA as an attachment to the Safe Port Bill in 2006. Similarly, Harry Reid is getting anxious to see online poker legalized in Nevada and John Campbell is now ready to get the ball rolling with online poker in California, since they reached an agreement with the Indian tribes.

The question, though, is who has more influence? Caesars and MGM are clearly much larger than the Sands and operate casinos throughout the United States but Adelson as mentioned is a major donor to the Republican Party. According to reports Adelson made millions in donations to the Republicans over the years including $800,000 to key political candidates like Geroge W. Busch, Tom Delay and Rick Santorum. Plus, last year he made a $1 million donation to the current Republican front runner Newt Gingrich’s organization, American Solutions for Winning the Future. So no doubt supporters of Gingrich in Congress may have a bug put in their ear by the frontrunner. Plus, Adelson recently approached John Kyl to express his concern and asked for his support to block the legislation. Kyl never made a commitment either way but said that he always listens to Adelson when he talks. Kyl, as many will recall stated that he was changing his views on online poker legalization but it’s unlikely that he honestly believes that personally since he stated numerous times that “he hates gambling.” Unfortunately for both Adelson and Kyl the Democrats still have the majority in the Senate so Kyl’s influence as a whip may be irrelevant.

On the other side of the coin Caesars is an important employer in the country and revenue generator, plus they have some key Republicans in their court, including former head of Homeland Security, Tom Ridge and former FBI agent Louis Freeh who are advisors for their organization, FairPlay USA.

It will certainly be an interesting battle but Adelson could have avoided it if he just was better prepared for the introduction of legalized online poker.

As of today (December 14th, 2011) the Morris Mohawk Gaming Group (MMGG) will no longer operate under the Bodog name. MMGG’s brand licensing agreement with the Bodog Brand is expiring at the end of this year and as a result MMGG will no longer be offering its services using the Bodog name or from the website, bodog.eu. Instead U.S. players will be moved to the new brand, Bovada.

What does this mean for players?
• All accounts remain entirely the same. U.S. players only need to log in at www.bovada.lv
• The business is still owned and operated by the Morris Mohawk Gaming Group, as it has been for the past several years.
• The same great products and games, payout methods and phone number will all stay the same.

Basically this is nothing different that when industry giant BetCRIS spun off its U.S. players into their Bookmaker brand back in 2007. Nothing changed, in fact, many players thought that the new brand with mostly U.S. specific sports and props was even better. We expect that same from the new Bovada. One nice thing that they have introduced is a new Poker platform where players are basically anonymous when they are playing. This prevents expert or pro players for fishing and data mining new or poor players so that they can go after them in tournaments and ring games.

Players should be automatically re-directed from their respective jurisdictions to the correct site. Bodog has done an excellent job of geo-location and when we tried this morning to go to Bodog, we immediately were redirected to the new bovada.lv domain. A redirect message as to why you are being re-directed will also appear.

Bodog has had to change their domain name in the past due to legal issues as well as the ongoing war that the U.S. is waging against online gambling companies that service U.S. customers, but this is not another name change. Instead it is the gaming giant’s parent company MMGG opening a new brand for U.S. customers. This is simply a way to differentiate between the different offerings from the company, while expanding Bodog into most of the top jurisdictions around the world where gambling online is legal.

The OSGA College Bowl Challenge takes just a few minutes to complete and is free to enter. Check it out at http://www.osga.com/2012bcscontest/free-bcs-contest.html. The deadline for entries is 8PM on Tuesday, December 20.

This year the annual BCS Bowl Contest from OSGA is bigger and better than ever. In its ninth year, the pick’em-style contest includes 32 bowl games and has a prize pool of $1000. This contest is Against the Spread. OSGA has massaged the point spreads to make every game half-point decisions to avoid pushes. Players simply pick the winners of each bowl game (ATS) and then the correct score of the BCS Championship game as a tie-breaker. Points are awarded for each win and each of the BCS games are worth extra points, so everyone has a chance right up until the National Championship game between LSU and Alabama

There is NO FEE to enter the OSGA 2011 College Bowl Challenge and this year the prizes are double that of previous years. The GRAND PRIZE of $600 is for OSGA Members, while non-members will get $300. The Runner-Up gets $200 – $100 for Non-Members. Places 3 through 5 also get prizes – 3rd Place gets a $100 Free Bet at Elite-rated Diamond Sports; 4th Place will receive $50 and fifth place will get a $50 Free Bet.

This contest takes just a few minutes to enter and there is No Entry Fee. Check it out at http://www.osga.com/2012bcscontest/free-bcs-contest.html. The deadline for entries is 8PM on Tuesday, December 20. GOOD LUCK!

Oh dear NFL: Please continue planning meaningful games with high fan appeal on Thanksgiving offering much more than pure betting interest.  And could you also offer FREE THANKSGIVING NFL NETWORK TOTAL ACCESS for the needy and poor? 

The Lions actually play a holiday home game with much more than a prize turkey and covering the spread at stake.  And “America’s Team” is tied for first place in the NFC East playing a Miami Dolphins squad riding a three game winning streak. Too bad they’re “Out of Luck” disappointing their fans.   The Brothers Harbaugh will make league history in the finale.  Who would ever predict the Ravens and 49ers possibly have a longshot chance of meeting again in this year’s Super Bowl? 

Green Bay -6.5 /56 at Detroit (12:30 PM ET on FOX)

With a strong wild card slot on the line, Ford Field will be rocking and giving Lions fans something truly meaningful to root for.  Combine that with some recent nasty Packer beatings on Thanksgiving, no one in blue will have to look hard for any incentive.
 
On the field it’s a different story.  So hard to bet against the Pack at full strength until they have a number one playoff spot locked-up.  While playing their worst game of the season last week against Tampa Bay, Aaron Rodgers still effortlessly lit up the Bucs defense.  This is a division game, a big national television game and therefore Green Bay shouldn’t fall asleep while pursuing a secondary goal of an undefeated season.

Lion’s backers likely threw in the towel last Sunday, being down 24-7 to the Panthers as a 6 point favorite, only to celebrate while crushing Carolina in the second half to cover.  You won’t see that happen very often.  An inspirational finish in College Football but a red flag in the pros. 

As for the point total, Mr. Linesmaker doesn’t put up 56 to 57 points by accident.  The highest number of the NFL season thus far.  This surely won’t be a 20-17 game.  The drama might be deciding the total in the final two minutes but don’t expect any easy cover going under.

PICK:  A very slight nod to the PACKERS -6.  A more confident play OVER 56

Miami at Dallas -7 / 44 (4:15 PM ET on CBS)

No truth to the rumor Leon Lett will toss the opening kick-off coin to commemorate the 18th anniversary of the NFL’s Top Ten blunders of all time.  I’m still regurgitating pumpkin pie remembering my Cowboys bet as Leon came crashing down in the snow after the blocked field goal. The Fins converted another chance, a win and a cover over the Boys.  That held up in Cowpokes lure until Tony Romo botched the snap in the Seahawks playoff game.

OK, can’t change yesterday.  The Dolphins are going nowhere this year despite three wins over bad teams and the Cowboys are in first place after three wins over bad teams.  So what does that mean and who is going to cover?
A very competitive game and a very difficult case ATS to make either way.

While Romo has looked sharp at times, the Cowboys still have a bunch of key injured players and a few playing hurt on both sides of the ball.  Third round pick DeMarco Murray could be a real find to complement their passing offense.  When healthy, the Cowboys can compete with anyone.  Will they ever find a decent kicking game in their history?  An area they’ve overlooked for thirty years. 

A bizarre situation for the Dolphins, who in reality would be helping themselves by losing to acquire the starting quarterback they desperately need.  Keep winning and they lose out, selecting perhaps the second or third college QB choice available.

The reality is no professional football players slacks it, especially with a national TV audience watching.  Miami has been playing proud defense in November but look for that trend to falter here.  The Cowboys at home offer much more of a challenge than the Chiefs, Redskins and Bills.  Starting quarterback Matt Moore is an average back-up, who has might have earned a permanent back-up job for next year with Chad Henne hurt. 

PICK: Cowboys – 7 

San Francisco at Baltimore -3 / 39 (8:20 PM ET on NFL Network)

Shame on the evil NFL that only paid subscribers will have the privilege of watching the Harbaugh brothers lead their teams onto the field.  On a quiet holiday evening, we would have likely seen one of the largest TV audiences ever for a regular season game.

As the Packers may prove this year, you can “win em’ all” but surely you can’t “cover em’ all” according to wagering logic and statistics.  The 49ers haven’t lost a game to the spread this year and this may be their greatest challenge in Baltimore.  Along with the Steelers, the Ravens are known as the league’s toughest team at home and need this game to keep pace in their division.

The big intangible is which Joe Flacco will show up?  The guy who looked dazed a month ago in Jacksonville or the hero known to fire up pin-point bombs on occasion.  Fortunately, he’s had reliable Ray Rice to bail out a mediocre at best season thus far.  On defense, the Ravens are the NFL’s BEST but likely minus Hall Of Famer Ray Lewis again on Thursday night.  Look for Ray to be screaming at his teammates all night from the sidelines.

Kudos to Alex Smith of the Niners.  No doubt Jim Harbaugh has been the difference in bringing out his confidence and ability this season.    Also wondering when RB Frank Gore will get his due, the NFL’s most underrated player.

San Francisco’s success and likely cemented number two playoff spot bye is more due to their defense, which was coming around last year.  Give some credit to departed coach Mike Singletary plus super tackler Patrick Willis, a great leader and motivator.  Perhaps for the first time in their existence the 49ers have a Pro Bowl kicker in David Akers, a great acquisition from the Eagles.

This adds up to a game too tough to call.  Without red zone turnovers look for a very low scoring game and a much better Under opportunity.

PICK:  UNDER 39

In 2007 after the DoJ arrested the NETeller founders and then seized all U.S. funds in transit, they worked with Navigant Consulting to arrange payback of players that were owed money. But the money came from NETeller itself and the DoJ in turn kept all money it seized claiming it was going to spend more than that prosecuting the case. Later when the DoJ shut down BetonSports, the DoJ kept all funds it received from Gary Kaplan and others and instead allowed Vantis Plc, a trustee in bankruptcy, to try and sell off some assets to pay back the players and other creditors. While Vantis was hired by the Antigua government, the DoJ was kept informed of the whole situation. Vantis tried to get the DoJ to release the fines for payment to players but the DoJ effectively laughed at the notion. Consequently, players received about 5 cents on the dollar. And in numerous other instances where the DoJ seized money from payment processors that were said to be operating for illegal gambling businesses, the DoJ kept all the money and never gave it a second thought. In fact, the money seized from Full Tilt processors itself would be sufficient to pay back U.S. players, but the DoJ never entertained that notion.

Asked why the DoJ never considers returning money from fines or seized funds, the former DoJ employee said that it would simply set a bad precedent. The FBI posted notices on its site telling Americans that if they bet at offshore establishments they are breaking the law and to return money directly to them would effectively be seen by them as abetting a crime. Moreover, if they suddenly agreed to use seized assets to pay Full Tilt players, then customers that got railroaded at BetonSports could possibly go to court asking for that situation to be reopened, since the DoJ has indicated a change in policy.

So the $64,000 question now is where that leaves U.S. players owed money at Full Tilt. One possibility is that the DoJ will ask GBT to use its own funds to pay back U.S. players as a show of good faith, but that scenario is unlikely since there is no reason for the group to cooperate. Americans are now off limits to the new Full Tilt and even if the U.S. changes its laws and allows offshore companies to apply for a license in a regulated environment, it’s almost certain that any companies that once dealt with the U.S. players would be barred. That would include Full Tilt and PokerStars. GBT needs its funds to pay back non U.S. players and rebrand the product. The U.S. customers are likely far down their list of issues to address. Another possibility is that the DoJ would release the $40 million that was in Full Tilt accounts (if they agree it wasn’t a fine) and ask the other shareholders like Phil Ivey and Tom Dwan to come up with the difference to pay back customers. But again that is unlikely since Ivey and others have made it clear they don’t feel responsible. The far more likely scenario is that the DoJ will release the $40 million along with a few other funds it deems were assets of the company and distribute that to players who submit claims for repayment via a company like Navigant. Many players won’t bother submitting claims anyhow, fearing they will be put on a DoJ and IRS watch list (as was the case with NETeller) and in the end players would only get a portion of their funds back.

The purchase by GBT is indeed good news to U.S. players but if they believe they will be repaid directly from the DoJ and without strings attached they’re living in fantasy land.