The signing of the Unlawful Internet Gambling Enforcement Act (UIGE) of 2006 forced publicly traded I-gaming companies to adjust their policies toward doing business with U.S. consumers. IGN recently published a list of companies that have decided to play it safe and sever ties with the market, along with some that are taking a wait-and-see approach. (See "The List.") Meanwhile, several companies, both public and private, have come out and said that they will not budge. Information on these companies is included herein.
PokerStars
With PartyGaming out of the U.S. market, U.K.-based PokerStars has taken over as the Internet's No. 1 poker room, and the company says it will continue serving U.S. customers. With regard to the scope of the new ban, the company stated, "These provisions do not alter the U.S. legal situation with respect to online poker. It is important to emphasize that the act does not in any way prohibit you from playing online poker. PokerStars believes that poker is a game of skill. Our business continues as before, open to players worldwide including the U.S. You may play on our site as you did prior to the Act."
Bodog
Costa Rica-based online gambling and entertainment company Bodog.com has declared its loyalty to its customers, saying it will not turn its back on the United States. "It will likely take months to fully understand what, if any, ramifications there are from this new law," said Bodog founder and CEO Calvin Ayre. "Our customers may take comfort in knowing that Bodog.com is structured in such a way that we're well situated to adapt to any changes in any legal environment. We are poised to continue our spectacular growth in the online gaming and digital entertainment space and if anything, the pending legislation has validated our broad-based digital entertainment model and our decision to stay private. We see the future as very positive for Bodog.com."
Intertops Poker
Kahnawake-based Intertops Poker ceremoniously announced on Oct. 19 that it will remain open for business and will accept all bets and process all payments from U.S. citizens. "We consider online gaming to be legal in most U.S. states and sanctioned by the World Trade Organization," the company said in a prepared statement. "We are licensed and regulated in both Canada and Antigua and comply with every law within the jurisdictions in which we operate. We are dedicated to offering our worldwide customers an efficient and enjoyable service via our online sports book, casino, poker room and games. As a privately owned and independent company we have arranged to fully accept and disperse payments for U.S.-based gamblers."
Absolute Poker
Privately held Kahnawake-based online poker room Absolute Poker said on Oct. 16 that it will continue taking U.S. play, in spite of the signing of the UIGEA. "It is the belief of our legal and executive team that online poker is a game of skill and the prohibitions signed into law on Oct. 13, 2006 by the President of the United States neither applies to online poker nor our business," the company stated. Business will continue as usual for the site and all existing and new customers are being assured by the company that their funds are safe and secure.
Mansion
Online gaming operator Mansion declared its intent to remain in the U.S. market, but has added a caveat to its policy. It will no longer be allowing U.S. bettors into its sports book, but it will permit them to play at its betting exchange, the Mansion Exchange. The company reasoned that because exchanges do not feature bookmakers, but rather individuals trading against one another, exchanges are legal under the new U.S. law.
Fun Technologies
Online skill games provider Fun Technologies asserts that the U.S. I-gaming ban does not pertain to its games and that it will not hurt its business. On the contrary, some analysts believe that U.S. developments will have a positive effect on the company's revenues due to skill games filling the gambling void. This sentiment has not been reflected in the trading of the stock, which has depreciated in value since the signing of the law.
International All Sports Limited
In a statement released Oct. 5, the board of International All Sports Limited said it was disappointed that the U.S. government was passing laws to circumvent its commitment under the General Agreement of Trade and Services to the World Trade Organization to allow free international trade for purely protectionist reasons. It also noted that the impending legislation included an exemption for horse racing and would not affect the business of its online sports book, IASbet.com. The company is, however, taking legal advice to understand the forthcoming regulations and any implications they may have for the firm.
DoylesRoom
Kahnawake-based online poker company Doylesroom.com announced on Oct. 18 that it will not only stay in the U.S. market, but it will honor all individuals that have earned VIP status from any of the major online poker rooms that have pulled out. Furthermore, the offer extends to those who want to move from sites that haven't shut off U.S. play.
FullContactPoker
Internet gaming software providers such as Playtech, CryptoLogic, Ongame and Boss Media have announced that their software platforms can no longer be used to provide gambling services to people located in the U.S. and certain licensees of those companies have decided to migrate to friendlier territories. In response, FullContactPoker has announced its intentions to leave the Ongame poker network in favor of a software provider that will allow it to take U.S. play.
UltimateBet
Online poker room Ultimate Bet sent out a message to its players on Oct. 12, which read: "UltimateBet continues to be available for play by all members of the online community worldwide, including U.S. players. The new U.S. legislation, expected to be signed on Friday, October 13, does not prohibit the online community playing online poker. At UltimateBet, it's business as usual. All players' deposits are held safely in a segregated account at a Tier 1 legal institution."
BetOnUSA
Antigua-licensed and regulated casino and sports book BetOnUSA will continue business as usual. The company announced that all U.S.-based players and affiliates are welcome and player accounts and future revenues for affiliates are guaranteed. BetOnUSA also has plans for further acquisitions and said announcements will be released soon.
InterXgaming
Online casino, sports book and poker room InterXgaming says it will continue to take U.S. play for the time-being, claiming the UIGE does not specifically outlaw online gaming. Todd Wolf affiliate manager said: "The legislation signed recently by President Bush, stating that credit card transactions to online gaming sites not be allowed, had no mention of actually gaming online, and therefore until that is legislated upon, we will continue to accept U.S. players." Meanwhile the company said it will aggressively look for partnership opportunities outside of the United States.
Poker Anyone?
The biggest backlash of the U.S. ban involves online poker, which is grown hugely popular among U.S. consumers in the past three years. A new site called CompatiblePoker.com seeks to show U.S. players where they can still play online.