Unclaimed Options -- Betfair reports that fewer than one third of the former customers of now-defunct betting exchange Sporting Options has taken Betfair up on its compensation offer. Although 5,342 punters still had funds in their Sporting Options accounts when the company collapsed, by Tuesday only 1,772 had signed up with Betfair to receive compensation. Betfair had set aside £3.5 million for its rescue package, but has distributed only £727,870.
Dead Bills -- The U.S. Senate last night approved a resolution that officially concluded the 108th Congress, meaning that the three active bills that would prohibit online gambling--H.R. 21, H.R. 2143 and S. 627 (all titled Unlawful Internet Gambling Funding Prohibition Act)--are now officially dead. Any future bill that would prohibit I-gaming would have to begin the process all over again, starting with an introduction and committee referral in the 109th Congress. Also this week, U.S. legislators came to an agreement on an intelligence reform bill (often referred to as the 9-11 Bill). An early version of the bill included language that would ban online gambling, but that section was removed. The passing of the 9-11 bill means the bill will not have to go through the committee process again, where it would risk being supplemented with more anti-online gambling sections.
Israel's Concern -- Israel's Council for the Regularization of Gambling in Sport recently sent a letter to State Prosecutor Eran Shendar, Israel Police chief of investigations Commander Moshe Mizrahi, and Israel Tax Authority Director Eitan Rub demanding the enforcement of the country's prohibited games, lottery and betting laws against online gambling. The letter, which asks for a "change in priorities to investigate and indict criminals in this area," estimates the volume of illegal betting in Israel at US$230 million per year. The council states that illegal online gambling typically involves organized crime, violence and money laundering and also that the problem is worsening because online gambling is easily accessible and is not a high priority for law enforcement officials. To combat illegal online gambling, the council suggests examining Internet servers to identify illegal operators and enacting a new bill to treat online gambling.
Cantor's Casino -- Online gaming software provider GMEI (Gaming & Entertainment Group, Inc.) has entered into a definitive agreement with Cantor G&W, an affiliate of licensed U.K. bookmaker Cantor Index, whereby GMEI will exclusively license its online gaming software to Cantor in exchange for up to $8.8 million worth of debt and equity financing. Cantor, which needed to find a software provider that did not accept wagers from the United States, will use GMEI's online casino software to launch an online casino based in Alderney. GMEI plans to use its revenue from the deal to fund its plan to place fixed-odds betting terminals and gaming machines in the United Kingdom and in other markets. It will also develop more online gaming sites for white-label clients of the GMEI/Cantor business.
Think Tank -- The National Center for Responsible Gambling is considering forming a new group that would establish a global team of gambling addiction experts that would meet at least once a year to share research, establish agendas and form effective treatment approaches. An NCRG advisory board plans to discuss the formation of such a think tank at its next meeting in three months. The NCRG is casino-funded non-profit group composed of officials from gaming companies, health providers and researchers. The group promotes problem gambling awareness and raises money for research.