Friday, September 22, 2006

During the month of September, cable and television networks paraded
programs on the subject of online and offshore gaming. These programs aired
just in time to stir up more debate as lawmakers on Capitol Hill were poised
to vote on whether or not to attach an online gambling ban to the current
defense bill. One network program on the subject of online gambling might
have given lawmakers the dose of reality they needed to make an educated
decision. News was swirling around the arrests of several Internet gaming
executives. ESPN hosted an online gambling debate on September 10th during
an episode of Outside The Lines. Nightline ran a feature on the eccentric
billionaire Calvin Ayre and took viewers on a tour of the Costa Rican based
Bodog Nation. The public response must have been startling, as in depth
feature segments about the gaming industry followed. And while the pieces
were interesting and helped expose the taboo subject of online gaming to a
mass audience, it was still just the drumming of an old message into new
ears. Network Programming On Tilt As networks continue to tackle topics on
the legality of online gambling, taxes on such, and the affect it has on
society, no real solutions are being presented. During two separate
features, reporters tilted their perspectives toward an all-out ban during
closing statements. But as hard-core journalists put a negative spin on the
gambling phenomenon, the results backfired, as those they scrutinized over
primetime television were given a voice. In most cases the interviewees
came across as more intelligent, better informed, and offered real solutions
to problems, compared to those delivering the hard-hitting questions. A 60
Minute segment that aired on Sunday, September 17 might have become just
another soft interview, as CBS reporter Lesley Stahl argued "gambling is
bad" and "the point of making something illegal is to stop people from
doing it, and penalize them if they do," but admitted that even America's
gaming industries, that have long opposed Internet gambling, are shifting
their position.

"I think the issue is very simple," said MGM/Mirage CEO Terry Landry. "You
should license it regulate it and tax it. I think to enact laws that you
can't
enforce makes no sense whatsoever."

Are Lawmakers Dealing With a Full Deck?
Sen. Jon Kyl believes the affect that gambling has on kids is the biggest
danger.

"Our kids have access to the Internet. They're frequently not supervised.
And you can run up a huge debt on your folks' credit card very, very
quickly."

Actually, that statement taken out of context could apply to several
activities when it comes to kids, or adults for that matter, on the
Internet. And Kyl's point was easily disproved in front of a mass audience.

Nigel Payne, former CEO of Sportingbet.com, who also ran Paradise Poker, ran
an experiment during a 60 Minute segment that aired on CBS. The producer
gave his son a credit card and Payne challenged the teenager to open an
account with Paradise Poker. Payne was certain, with effective security
measures in place, the underage visitor wouldn't be able to gain access to
the site.

"That 16-year-old has got to give me four or five pieces of information
about him, relative to his bank account, his personal details, where he
lives and other things," said Payne. "I can be 99 percent comfortable that
this 16-year-old doesn't even get through my front door."

Payne made his point, as the boy's attempts to register with Paradise Poker
were futile. Warnings that read, "You must be 18 or older" popped up each
time.

From Across The Pond
"This is why regulating the industry is so important," said Payne. "If you
regulate it, you set limits."

The Englishman addressed several other issues concerning online gambling and
countered questions with eloquence and poise. He even posed a few questions
of his own, though not necessarily intended for the journalist conducting
the interview, but a worldwide audience to ponder. So, without a harem of
bikini clad women or a convoy of shiny new Hummers, the unassuming Mr. Payne
presented a poignant thought.

"Do you think the Internet is suddenly going to go away? Do you think that
people are ever going to stop gambling? So what are we going to do in ten
years time when this industry is ten times bigger than it is today? "

Then Payne posed another question to a primetime national television
audience. "Please give me one solid plausible argument why you shouldn't
regulate it."

It was just about that time when the chairman of the senate armed services
committee was considering whether or not to attach an internet wagering
prohibition to a piece of 'must-pass' legislation.

Two days later, when Senate Majority Leader Bill Frist approached Senator
John Warner, Warner consulted with the ranking democrat of Michigan, Senator
Carl Levin. And though the House of Representatives passed the anti-online
gambling legislation in July, it still needed to make it through the Senate.

Frist made explosive accusations that online gambling promotes money
laundering, racketeering, tax evasion and a host of other felonies. And in a
desperate attempt to quickly establish an all out ban, he and other senators
attached additional legislation to the current defense bill.

Frist failed in his attempt but has vowed he will continue to push for
another vote on the issue. And though Payne and several other countries have
proven that licensing and regulating online gambling will win the trust of
consumers and eventually put the less reputable sites out of business, naïve
lawmakers would rather it all just went away.

"I promise you within 12 months. the problems. will have disappeared or
significantly reduced, because customers will have voted with their feet."