Online gambling has become very popular around the world.  Unfortunately, Americans haven’t had much luck when it comes to gambling due to restrictions imposed on them by the Federal government.  There are online casinos and online bingo sites claiming to allow US players, but credit card companies block any transaction related to gambling, so Americans find themselves shut off from the online gambling industry.

With the recent boom online bingo, it looks like they are finally getting an option, but they are still in danger as long as the law prohibits them.  The main reason that’s stopping US residents from gambling online is the Federal Bill that was passed called UIGEA.

Unlawful Internet Gambling Enforcement Act or UIGEA

Unlawful Internet Gambling Enforcement Act is under the Safe port Act of 2006 signed by President Bush.  He signed the act into law last Oct. 13, 2006.  The UIGEA prevents the transfer of funds from a financial institution to any Internet gambling site with the exception of horse racing, online lotteries and fantasy sports.

This is the main reason why US residents are not allowed play in online bingo rooms.  Online gambling sites, networks and operators took a huge blow from this act, and many companies were forced out of the US market due to the prohibition of Internet gambling.  Now, the Act is being redrafted by the US Treasury before Bush’s administration ends.  It’s a race against time as the new president elect takes the seat on the White House for a new administration.

This last-minute push is a common practice as the administration changes, and it is called the midnight drop.  Unfortunately, this Act hasn’t clearly defined what an illegal transaction is, and there has been much confusion over the issue.  Now, a new draft was created and sent to Office of Management and Budget.

Uncertain Future of Online Gambling

Right now, the situation of online gambling is still unclear.  Generally, US residents cannot play since their deposits are just going to be blocked.  The online gambling industry is hoping that this will get cleared soon, so US residents can enjoy their favorite online bingo and online casino games like everybody else in the world.  There are online gambling sites that welcome US players, but this may also be a gamble for  US citizens.

Let’s hope that the new administration will be more sensible to the online gambling industry and community.  Obama is just about to begin his administration, so the online gambling industry has to wait and see.

Australian media company ABC Online is reporting that online gambling companies Betfair and Sportingbet are launching a High Court challenge in Australia seeking to challenge legislation that stops non-New South Wales companies from advertising gambling products and services in the Australian state.
The move may have consequences for online bingo games operators and international online bingo halls looking to access the growing Australian online gambling market.

Michael Sullivan of Sportingbet says his company has been unfairly restricted from using print, radio and television advertising and from being allowed to sponsor events in New South Wales. He adds that an Australian High Court decision against Western Australia’s government proved to be the catalyst for the current legal action.

“If you look at what the decision was in Western Australia in relation to Betfair, we think we’ve got a very good chance,” he said.

“We are licenced in the Northern Territory and we’re not allowed to advertise in New South Wales; that is a restriction of trade between states and territories, and we believe it to be unconstitutional.”

At this time there has been no official government reaction to the legal move by Betfair and Sportingbet.

For the online gambling industry and online bingo games operators alike it’s been a bad day at the office with news that US Congressman Barney Frank’s attempt to halt the implementation of UIGEA regulations has failed.

The delayed vote on Frank’s HR5767 bill failed due to a tied 32-32 vote before the Financial Services Committee.

The result is that US banks face having to become regulatory enforcers of UIGEA’s attempt to restrict financial transactions between US gamblers and non-US online gaming companies. UIGEA has been criticized as both unworkable and a drain on US banks’ resources at a time when US banks are under severe pressure due to the current credit crunch.

Online bingo industry observers had hope HR5767 would be successful and possibly lead towards a re-opening of the US gambling market to non-US online bingo halls. The failure of the bill to pass has dealt a blow to such hopes, though bingo online operators have successfully explored other markets since the inception of UIGEA in late 2006.

Online gambling software developer Playtech, a popular choice with many online bingo games operators and online bingo halls, has posted another record quarterly performance.
The company’s first quarter revenues for 2008 showed US$39 million – an jump of 97% over the same period last year. It also registers a 19% increase on the US$32.7 million earned in the fourth quarter of 2007.
Online casino revenues saw a 79% increase to US$27.2 million, also up 19% on 2007’s 4th quarter.

“This has been an outstanding quarter for the group, registering impressive month on month revenue growth,” said Mor Weizer, Playtech CEO.

“The addition of new licensees during the period and the anticipated full roll out of the new Asian P2P games and Flash Poker mean the group is well positioned to grow in Q2 and beyond. The group continues to pursue significant business opportunities across all the regulated markets and the Board is highly confident regarding the group’s trading performance for 2008 and beyond.”

The Playtech software platform is considered one of the major platforms driving today’s online bingo industry. In addition its Casino and Poker software which features the likes of Windows Casino and King Solomons Casino is favoured by players across the world.

Written for Eyes Down Bingo by Anthea – Your Bingo UK blog

A New York Times article by Clifford Krauss entitled  “Economic Troubles Affect the Vegas Strip is highlighting the downturn currently affecting Las Vegas.  From its lead paragraph we read a good summary of the problem facing Vegas:

“For decades, this gambling center seemed nearly immune to the economic swings of the rest of the country. But these days, the city built on excess is seeing a troubling sign: moderation. Gambling revenue and hotel occupancy are down. Resorts are slashing room rates and offering coupons or free nights. Casino operators are firing hundreds of workers, and their stock prices have plummeted since October. Credit is drying up for hotel and condominium projects planned before the slowdown arrived.”

However, online bingo industry observers may have an insight into the causes of this situation, most likely due to witnessing a similar decline taking place amongst our cousins in the land-based bingo industry.

There’s no doubt that many gamblers are taking their game online and that the growth we have seen in online gaming, particularly in the market for people who play bingo online, may be contributing to a slowdown in land-based gaming.

Naturally, there will be a huge resistance by land-based gabling operators to admit that their current downturn is in any way linked to the upsurge in online gambling.  We’ve seen this in the reactions by land-based bingo here in the UK where online bingo and online bingo halls are hardly ever acknowledged as a reason for that sectors downturn.

Though the New York Times article cited above catalogues the problems and counter-actions being taken in addressing Vegas’ downturn, it makes no reference to the growth of online gambling.  There are no real numbers out there yet correlating a decline in traditional gambling with the move to its online variation, but any study in this direction may uncover some interesting facts about today’s gaming customers, i.e. it makes more sense these days to save the cost of a trip to a casino by simply logging on to favourite gambling site instead.

Written for Eyes Down Bingo by Anthea – Your Bingo Uk blog

Online news site ZDNet is reporting that latest US statistics for February and March 2008 show an increasing interest in online gaming with the industry garnering the third largest percentage monthly increase.

Online gambling followed radio entertainment with a 27% growth and gay and lesbian themed sties at 26%.  Online gambling came in at 14%.

Thought the ZDNet report does not say so, online bingo games and online bingo halls are a growing niche in the online gaming/gambling industry with the number of people who play bingo online increasing, according to industry statistics.

Written for Eyes Down Bingo by Anthea – Your Bingo UK blog

Media reports speculating that Denmark’s government are close to altering its online gambling policy seems to have been confirmed by more media reports that a regulatory and licensing approach is being seriously discussed.
The news will be welcomed by online bingo games operators and European-based online bingo halls looking to gain access to the growing Scandinavian online bingo market.

Denmark’s minister for taxation, Kristian Jensen, has been heard on Danish national radio saying that the government was looking at opening up its current monopolistic system in favour of strictly regulated and licenced online gaming companies. The move comes after months of pressure from the European Commission (EC) which has sought to convince the Danish government that its current gambling laws are in contradiction to European trade law.

Should the Danes alter policy, non-Danish European Union companies will be able to operate in Denmark in competition with existing gambling state-run monopoly Danske Spil.

The minister is quoted as saying: ”That’s a possible situation, if the foreign bookmakers can live up to the strict regulations we have (in mind) for those who want to offer legal gambling in Denmark. I do not wish any wild west situation. I want a regulated market.”

Bingo online has been gaining in popularity in Denmark over the last year with the market for free online bingo proving to be one of online gambling’s fastest growing niches.

The government of Spanish autonomous area Valencia looks set to follow the example of other Spanish regions in opening up the licensing of gambling operations.

For online bingo games operators and online bingo halls, the completion of Valencia’s investigations into the feasibility of implementing a new gambling licensing may offer an opportunity within the Spanish market.  Online bingo has been growing in popularity on the Iberian peninsula with a niche group people who play online bingo making their presence felt online.

The proposed changes in Valencia’s current regime began last September when the opposition Popular Party proposed the regulation of online gambling.  The proposed new legislation now goes to the next stage in the Spanish Congress