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It's been a hectic week for online gambling as the U.S. authorities launched a widely reported attack on the industry it continues to insist is illegal (except for the carve outs on horse racing and lotteries so beloved by the politicians!)
A chain reaction of plunging share prices, cancelled executive visits to the States, extradition fears and postponed conferences followed the shock arrest of BetonSports CEO David Carruthers who was detained at Dallas airport whilst in transit from the UK to Costa Rica.
Developments, including a bail hearing for Carruthers today (Friday) were continuing apace as InfoPowa went to press this week....and the reactions to last week's House of Representatives vote for a ban on online gambling are still reverberating around the Internet.
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BetOnUS chief arrested in transit
The week's news was off to a flying start Monday as reports appeared in the Telegraph that the high profile CEO of BetonSports, David Carruthers had been detained by US federal officials whilst in transit through the States on his way to Costa Rica. Carruthers is a British citizen and was travelling from the UK with his wife at the time.
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Bet On Sports CEO to face RICO charges?
David Carruthers, the chief executive of BetonSports appeared at the Federal Court House in Fort Worth, Texas, on Monday according to a spokesperson for the FBI.
Carruthers was detained late Sunday at Dallas airport by the US authorities while en route from the UK to Costa Rica.
He was detained by members of the FBI and the Inland Revenue Service (IRS) operating under a warrant for his arrest. He is believed to have spent Sunday night in Tarrant county jail.
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Feds release details of sealed indictment....and no bail for Carruthers
Events moved quickly for detained BetOnSports executive David Carruthers, with a court appearance, continued detention and the release of the previously sealed indictment on which he was detained by the U.S. Department of Justice.
Carruthers (49), a British citizen was arrested by FBI and IRS officials at Miami airport whilst in transit between the UK and his home in Costa Rica late Sunday, and detained without bail in the nearby Tarrant county jail.
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London and Canadian online gambling stocks take the hit from DoJ action
Online gambling executives and investors alike will be anxiously watching the stock market scene today (Wednesday) in the wake of stock declines that have hammered the industry following the arrest and continued detention of Bet on Sports CEO David Carruthers over the weekend.
Late Tuesday, London gambling stocks and to a lesser extent Canadian gambling shares had declined sharply, presumably as a result of nervous investors dumping their holdings.
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Speculative reporting gives false hope to investors
UK gaming stocks recovered ground as the London market opened midweek on rumours that a deal had been struck between Bet On Sports and the U.S. Department of Justice, only to fall back when this was denied by the company.
The rumours, allegedly started by a speculative article in an industry publication, initially enabled investors to recover some of the losses suffered in the last two sessions, on talk that BoS had reached a deal with U.S. authorities to resume business by the end of this week.
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Too many cancellations in the wake of the BetonSports affair
The Bodog Marketing Conference scheduled for July 25th in Las Vegas is the first industry function to fall foul of the U.S. Department of Justice action against industry executive David Carruthers this week.
In the wake of the BetonSports affair (see earlier InfoPowa bulletins) Susan Mainzer, the Media Relations Manager at Bodog.com has announced that the conference is to be cancelled, although the celebratory party planned for the Tao at the Venetian on Tuesday, July 25th at 9 p.m. is to take place.
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The BetonSports case focuses attention on U.S. - U.K. fast track extraditions
The international terrorist threat generated a desire for "fast track" extradition procedures between major nations and allies like Britain and the United States, but according to the Times Online this week the process has been mainly used to bring more conventional criminals to justice....and there's the possibility that internet gambling executives in the UK could be vulnerable to fast-track extradition to the USA if their businesses are found to be breaking American tax law.
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BetonSports executive is regarded as a "flight risk" say American officials
A growing number of industry people are concerned at the harsh manner in which U.S. officials have treated a respectable British businessman following his arrest last weekend at Dallas airport whilst transitting the U.S.A.
David Carruthers, the CEO of the BetOnSports group and an outspoken critic of American political attempts to ban online gambling, was arrested and held incommunicado on a sealed indictment naming 11 persons for a range of 22 alleged offences under American law. He was held overnight in the local county jail, appeared briefly the next day in handcuffs in a federal district court and was committed to custody without bail for several days pending a further hearing.
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In any event, don't travel to the US to find out, recommends legal expert
The Carruthers arrest and detention without bail has again focused attention on the old legal question, "Are online casino and poker activities embraced by the 1961 Wire Act?" The act certainly covers the use of telephones to take US wagers, but does that extend to more recent technologies?
"The Justice Department has said [all] Internet gambling is prohibited, but most legal experts would say they are wrong, that this only applies to sports betting," opines Joseph Kelly, a legal scholar at the State University of New York at Buffalo, who has consulted for the government of Antigua and others on US law.
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Turnkey provider notes that it does not develop sportsbetting software
Gambling software developer and turnkey provider Playtech, which is listed on the London exchange reacted to share price declines this week caused by the BetonSports - USA legislative situation, drawing attention to the fact that it does not provide sportsbetting software.
Earlier reports (see InfoPowa bulletins) indicated that in the first half of the week the company's shares had taken a hammering along with other online gambling stocks, declining by as much as a third at one point.
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Spooked by the DoJ actions in the States, major UK gambling group bars U.S. players
In a move interpreted by many observers as a fear of U.S. legal action and the possibility of extradition attempts, the giant Coral-Eurobet-Gala online gambling group has warned players and webmasters that it will no longer be accepting players from the USA and has closed all current player accounts.
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Were FBI officials turned away by Costa Rica?
One of the interesting sidebar stories to emerge from the Carruthers affair suggests that FBI agents who jetted into Costa Rica expecting to receive cooperation in securing the assets of BetonSports and most wanted person Gary Kaplan returned home empty handed on both counts.
Unconfirmed reports from Costa Rica allege that earlier this week FBI agents travelled to the central American nation in the hope of obtaining the authorities cooperation.
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"It's a marriage based on a proven relationship that will create a powerhouse serving both the land-based and interactive gambling industries," says Sue Schneider.
Sue Schneider's River City Group has joined the UK Clarion family of gambling industry events and publications through a purchase for an undisclosed amount.
This move follows Clarion's successful integration of ATE, the producer of the London-based International Casino Exhibition (ICE) in 2005.
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A very real case of slooooow pay!
Sympathise with the extraordinarily patient player who has been struggling for a year to get paid a very large win by RTG-powered Club Player Casino.com. Having researched Club Player and enjoyed previously untroubled gambling at the casino, the player deposited $20 000 on June 16th last year. He managed to achieve an awesome final win of $150 000, but his elation soon turned to despair as his nightmare began.
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Fun Technologies clinches casual gaming deal with 8 Lycos Europe portals
FUN Technologies Inc. a major Canadian provider of online skill and casual gaming, announced today that its wholly owned subsidiary, SkillJam EU Limited, has signed a two-year exclusive agreement to create a private-label skill-gaming platform for Lycos Europe.
Under the terms of the pan-European agreement, SkillJam will develop, operate and support the pay-for-play gaming sites for eight Lycos Europe portals: UK, Germany, France, Spain, Italy, Holland, Sweden, and Denmark. A publicly lised company, Lycos is an important European portal provider that reaches around 30 million unique users within its network every month.
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An epic final closes major backgammon tournament in Monte Carlo
The 31st World Backgammon Championship finished with an epic final this week at the Fairmont Luxury Resort in Monte Carlo. The two finalists were Luigi Villa (Italy) who was the first ever World Backgammon Champion in 1979 and Philip Vischjager (Netherlands) who was a first time player at the World Championships and was previously a finalist in 4 major Dutch tournaments.
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AP Lady.com designed specifically for growing numbers of women poker players
Online poker room Absolute Poker has launched AP Lady.com, a new online poker site designed specifically for the growing number of women players.
Poker is popular with women because it can be very social and its also a thinking game, said Lacey Jones, one of Absolute Pokers professionals and participant in this year's World Series of Poker.
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Chinese Uni says Chinese online gambling alone is worth $75 billion annually
Creating an at times heated debate among industry observers this week was an article in Global Gaming News.com and other online publications suggesting that China loses US$ 75 billion annually to online gambling.
This substantially exceeds the more conventional estimates of respected Western research firms like Christiansen Capital Advisers, whose latest figures indicate an industry currently worth some $12 billion a year in revenues, with the potential to rise to twice that by the year 2010.
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Strong entry into the bingo sector by major online gambling group
The online bingo sector has a more significant competitor this week with the launch of PartyGaming's revitalised challenge in the form of subsidiary PartyBingo.com.
Following earlier launches this year of Party Casino and Party Gammon, the re-energised bingo interests of the group have been infused with more marketing and promotional incentives. Company spokesmen have promised that in the coming weeks players can expect enticing promotions and increased Web coverage from affiliate sites.
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Fargo state Representative Jim Kasper could be frustrated by moves to ban online gambling
Associated Press reported this week that the efforts of North Dakota Rep. Jim Kasper to introduce legislation aiming to legitimise online poker in the state could fall foul of the recent federal attempts to ban this form of entertainment across the nation.
If Bill HR 4411, the " Internet Gambling Prohibition Act 2006" is approved by the Senate, Kasper's attempts to legalise the game in North Dakota could be prejudiced by provisions which hamper financial transfers.
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"One thing is certain. If the bill eventually becomes law it will be very difficultif not impossibleto enforce. The U.S doesnt own the Internet, after all, and offshore gambling operators and eager U.S. players will quickly find ways around the legislation."
Reaction to the House of Representatives attempt to stifle online gambling with a few notable exceptions has continued this week. The Texarkana Gazette carried a well reasoned editorial opinion on the issue under the title "In Our View: Fold 'Em".
The article starts with a summary of Bill HR 4411, on which House members voted 317-93 to prohibit the use of credit cards and other payment gateways for Internet gambling purposes. The bill also clarifies current laws against gambling and opens the door for enforcement officials to work with Internet service providers to block online gambling sites.
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British minister says gambling could enhance quality of life if properly regulated
Amid all the hoo-ha over the American House of Representatives vote against online gambling this week, across the Atlantic the British were efficiently getting on with regulating the activity.
Gambling could be an 'enhancement to the quality of life' if it was brought into the mainstream, Richard Caborn, Minister for Sport and Gambling, said, asserting that the majority of adults in UK who enjoyed gambling should be allowed to bet in a well-regulated environment.
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What happens to HR 4411 now?
The House of Representatives vote in favour of Bill HR4411 "The Unlawful Internet Gambling Prohibition and Enforcement Act of 2006" has whipped up a blizzard of media publicity, much of it creating the impression that the ban on online gambling is now law.
It isn't. HR4411 has a way to go yet before it reaches the President's desk for signing into law. Here's a quick summary of the future path of this legislation:
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Senate majority leader's office seems confused
Trying to get a sensible snapshot on the likely U.S. Senate progress of the online gambling prohibition bill recently passed by the House of Representatives proved to be a little difficult Thursday as staffers in the Senate majority leader's office gave conflicting information.
One early report from Reuters, quoting an aide to majority leader Senator Bill Frist revealed that the bill is already facing some opposition in the U.S. Senate and will not come up for a vote before the chamber takes its August recess. The aide told Reuters that lawmakers were still working on the bill and would not be able to hold a floor vote before the Senate recesses for its August vacation.
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3 years on from its David and Goliath clash with the U.S., tiny Antigua takes the next step in the ongoing dispute
After three years of wrangling in World Trade Organisation procedures with the United States, the island nation of Antigua and Barbuda has initiated investigations into the alleged non-compliance of the US with certain WTO rulings.
A new WTO investigative panel has been requested by the islanders in order to enquire whether US restrictions on internet gambling breach world trade rules. US laws banning interstate betting over the internet will be examined by the investigators, who are required to report back to the WTO within 90 days.
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Alderney egaming law is to be amended following a legislative review.
Following a recent legislative review, the island of Alderney is to simplify its licensing by doing away with activity-specific licenses and introducing a "one license fits all" policy.
Explaining the change, Robin Le Prevost, the recently employed chief of ecommerce for the jurisdiction said the change has been occasioned by the number of legal modifications recently undertaken, and the speed with which the industry is advancing.
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VCGaming doing well, but not in Spain
Presenting VC Gaming's trading update this week, financial director Gerard Cassells had good news and bad.
The good news was that VC is performing well in line with its objectives, and maintaining its annual growth rate of 28 percent with solid expansion in the Russian market and continued good performance in Central and Eastern Europe. The bad was that Spanish operations have clearly been disappointing, and the company is disengaging from its ambitious plans there.
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500 000 new online casino and poker room signups in 6 months is pretty good going....
Online financial processor Neteller now has a customer base of 3 million in 120 countries, with a daily average signup rate that has increased by 19 percent to 3 251, according to current performance statistics released this week by the company, which is based on the Isle of Man.
Company spokesman Andrew Gilchrist said that in the past six months alone, the customer base had expanded by 500 000 signups, and that business has been generally positive despite the seasonal downturn. "The second quarter is usually regarded as a slower quarter; this time of year is traditionally slower than the first quarter," he said, adding that the company was pleased with its performance.
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URU is growing
One of the key needs for online gambling operators is a fast and reliable way of verifying the ID of potential clients, and a growing force in the British arena for these services is URU, a subsidiary of the GB Group.
The latest trading figures from the group show that URU, which is offered by GB's DataAuthentication venture is making a solid contribution to a gratifying 14 percent growth in business.
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Watch out for Virgin's new campaign ideas from the Lean Mean Fighting Machine!
Sir Richard Branson's Virgin group has a reputation for innovative and exciting marketing, and the group's venture into online gambling has shown that the same flair and imagination is being applied on the Internet.
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Advertising agency will push hard on new 3D poker site
After the extensive word-of-mouth and gambling show exposure new 3D poker online site PKR has been receiving recently, one could be forgiven for thinking that an advertising campaign was unnecessary, but the newcomer shows no sign of turning down the volume of its promotional efforts and this week hired an agency to boost it.
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The start of a new trend in internet poker?
Six weeks back the advent of "live over the internet" poker using Webcam technology was announced by Pharaoh's Poker Palace.com, with Beta testing scheduled for this (July) month, and it now appears there will be some competition for the first operator into this new Internet gambling niche: JNQ Global Inc. has announced an August launch for their equivalent product.
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Spin3s flagship wireless casino to be distributed as standalone Java game
Spin3, powered by Microgaming, launched its latest product this week - a line of stand-alone, play-for-fun casino style mobile games under the provider brand SpinLite.
Microgaming's popular Tomb Raider video slot will be the first game to feature on SpinLite, which mobile service providers and content aggregators around the world will be able to license on a revenue-share, pay-per-download basis.
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Some strange sounding brands, but it's all go and tons of fun at WooWorld
Microgaming's mobile casino associate, Spin3 has clinched an important deal with Singapore based entertainment content aggregator WooWorld, which has selected Spin3s play-for-fun SpinFone system to offer the first mobile gaming competition in Singapore.
Mobile gamers will be able to download WooWorlds WowBoss casino games via premium SMS and compete for the highest scores to win prizes like iPod Shuffles, digital cameras, Swatch watches and shopping vouchers.
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The NBA's high profile bad boy is the theme of new GP slot
Personal disclosures, fashion statements and outrageous behaviour have made former basketball star Dennis Rodman an internationally known celebrity, and his colourful personality is now reflected in a new video slot launched this week by Playtech-powered Golden Palace Casino.
One of the casino's biggest and most recognisable spokesman, Rodman has helped Golden Palace.com with several ad campaigns, including participating in the Running of the Bulls at Pamplona to help raise money for Multiple Sclerosis research.
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Endurance test for top poker players on the planet
The World Series of Poker event that has grabbed the headlines this week was undoubtedly the H.O.R.S.E. tournament (see previous InfoPowa bulletins) where the creme de la creme of players in several variations of the game paid $50 000 a pop entry fees for a crack at the $1.7 million first prize, or a share in the $6.8 million prize pool.
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Average Brit has to prove identity 11 times a year
UK adults are asked to prove their identity (ID) 11 times on average each year, research from Manchester Business School has found. Laws meant to combat money-laundering and terrorism mean Britons are increasingly being asked to produce ID.
Buying an airline ticket, leasing a property, opening a savings account and registering with a doctor all require ID. And according to the research, by 2010 Britons will be asked to produce ID, usually in the form of a passport an average of 17 times a year.
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Productivity up fifty percent with Express Outbound product
Productivity at Betfair's customer care centre has been boosted by fifty percent, according to a press release this week from Genesys Telecommunications Laboratories.
The press release claims that the companys Express Outbound software has enabled Betfair to increase the productivity of its outbound customer care centre by using preview dialing to reduce the time agents spend dialing customers - significantly increasing the number of calls that CS reps can make per day.
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Brash, in-your-face and all attitude...it must be TonyG!
Top professional player and certified Bad Boy Tony G has entered the online poker business, launching his own online poker room at TonyGPoker.com with a Malta license. And just like Tony, the new site is brash, in-your-face, and full of attitude.
Tony G is one of the most recognisable and outspoken stars on the poker circuit, and he has set about creating an online poker room with attitude, for people that want to play like he does straightforward, no-nonsense action.
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L&G's VIP poker changes to Microgaming network and software
Leisure & Gaming plc's subsidiary gambling group VIP Services has carried out an extensive re-branding of its online poker offering which re-launched this week on a revamped site powered by Microgaming software, with players empowered to compete in the large Microgaming Poker Network.
The old VIPpoker is now rebranded VIP.com Poker, providing players with access to some of the most extensive online poker action available on the Web.
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Keeping pace with the action for US pokerheads
Poker fans who need to know immediately when World Series of Poker events are going down have a new cellphone service from this month.
News and updates from the poker world series are now available as SMS alerts to U.S. wireless network subscribers via the Poker! Mobile service, which is offered through a combined effort by Bluff Magazine, FullTiltPoker, Setanta Mobile, Trajectory Sports & Media Group and mStyle.
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Third generation UK betting group could be up for grabs
One of the UK's most respected news journals, The Times reported this week that potential buyers are looking over the Victor Chandler Group, one of the worlds best-known betting firms.
The company, run by Victor Chandler but started by his grandfather, is understood to have hired the corporate-finance firm Zeus Capital to evaluate the unsolicited approaches and advise on how to proceed.
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Alleged Colorado internet gambling wheeler and dealer faces multiple charges
Back in April this year InfoPowa reported on the search for David Howe, an alleged Internet fraudster who was exposed by a Denver television channel after selling rudimentary online casinos to scores of people before disappearing.
Howe has now been apprehended and charged with selling Internet gambling sites to clients who were to operate them from their homes in the United States. He appeared in a Colorado court this week to face charges of professional gambling, fraud, computer crimes and providing gambling information.
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Costa Rica's BlueGenie to launch soon
The already competitive online casino sector is likely to see a new entry soon according to press material released this week by Costa Rica-based Blue Genie Gaming SA.
The company has been hiring experienced personnel including Robert Evans, who was formerly the head man at Nine.com until it was taken over by Leisure and Gaming plc earlier this year. Evans has been appointed as senior vice president and chief marketing officer, effective Sept 18 and reporting direct to the CEO at Blue Genie, Robert Moran.
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Looking good, and good at poker? Here's your chance to join the Playboy Ladies Poker Team
The visual media is going to love this one, assuring it of plenty of eye-popping coverage - the renowned Playboy brand is putting together a poker team that combines beauty with brains.
Playboy's Alta Loma Entertainment has commissioned the Players Network to produce Playboys Women of Poker, a multipart television series that will feature beautiful women competing to become members of Playboys Poker Team.
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Mother of two takes the big prize on television gameshow
UK mother of two Sarah Lang (31) was over the moon with joy this week at the news that she had won the GBP 1 million top prize in a television gameshow.
Sarah hit the bigtime on the show Pokerface, screened on the ITV network and has some big ambitions that include buying a plot of land on the moon.
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A simmering dispute over a draconian release form heads for the courts
A year old row over World Poker Tour release forms between pro players and Steve Lipscombe's company surfaced in a Los Angeles federal district court this week when some of the top player names in the industry filed a lawsuit alleging that WPT unlawfully conspired to eliminate competition, and violated the intellectual property rights of players.
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This journalist was right on the spot...
Journalist Jeff Haney writes in the Las Vegas Sun this week that he had a ringside seat at a collusion attempt during the WSOP and witnessed the cool and professional way inwhich it was handled.
Haney was a player at the table where the incident took place during a 10-player no-limit Texas hold 'em "satellite" - a minitournament where the winner earns cash or chips that can be used to enter bigger tournaments at the World Series.
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Casino City plans to do some weed removal from the industry garden
Michael Corfman's Casino City publishing group has bought the Gambling Portal Webmasters Association (GPWA), probably the largest body of its kind in the industry, for an undisclosed amount.
In announcing the move, the Casino City CEO described the GPWA as an important resource for online gaming portal site owners that will continue to thrive and grow under Casino City's leadership.
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Striking while the iron is hot....a conference on the U.S. legal situation
Hard on the heels of legislative developments and the BetonSports debacle in America comes an Emergency Briefing from World Online Gambling Law Report.
The Report is organising the briefing to analyse the legal background and significance of the recent action taken by the US authorities, and will be held in London within the next two weeks.
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| PREVIOUS NEWS ARTICLES... |
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| 17th June 2006
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| 24th June 2006
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| 1st July 2006
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| 11th July 2006
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| 15th July 2006
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