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Online casino operator Virgin Games.com has announced the launch of its latest online slot, Bejeweled, commenting that the new addition is the first of many new offerings that Virgin Casino will be adding to its portfolio of games through the new integration partnership with gaming platform provider, Game Technology Solutions (GTS).

Virgin Games has partnered with the platform provider to offer customers access to a wider range of premier games, the popular Bejeweled being the first of many, a spokesman said this week.

The aim of the game is to link adjacent gems of the same colour, both horizontally and vertically and match a set of three or more precious chains; the more matches made, the higher the score and if more than three gems are linked wins are awarded. A jackpot of 20,000 credits can also be won with a single bet.

Arizona Republican and the number two GOP leader, Senator Jon Kyl, may have trouble come Election Day.  The good news for Kyl is that the Election Day in question won’t be until 2012.  The bad news for Kyl:  There is plenty of time to mount a campaign against the Senator from Arizona and get him out of public office once that Presidential election year does finally arrive.

Senator Kyl has been a long time fixture in Arizona politics and a workhorse in the Senate.  He is also among the most outspoken politicians against online gambling and has been since 1998.  Every year accept for one, Kyl drew up bills that would make online gambling illegal.  He failed each and every time until that dreadful late night in October 2006 when he and Majority Leader Bill Frist managed to ram through the Unlawful Internet Gaming Enforcement Act (UIGEA) as part of an unrelated port security bill.  The legislation passed by an overwhelming majority, not because it had anything to do with Internet gambling prohibition, but rather port security had been overwhelmingly embraced by both parties. 

This is the same Jon Kyl who once appeared in the U.S. national news near the end of his 2006 campaign claiming some bloggers were attempting to influence search engine results for searches on Kyl’s name, using Google bombs.

Now one of the most enduring politicians finds himself being shunned by voters back at home thanks mostly to his partisan bickering, especially when it comes to health care reform.

From the Arizona Republic:

(As) top Democrats and Republicans have learned over the years, voters back home don’t always appreciate the partisan demands of their high-profile jobs. And although the constant media exposure seems like a perk, it can have the negative consequence of making the lawmakers the public faces of congressional bickering and dysfunction.

That picture is hard to escape. After all, the leaders must articulate and drum up support for their agenda while appeasing their party’s base of activists and fundraisers. At the same time, they have to convince the public that the other side is wrong.

The potential perils are the same regardless of party: recent polls suggest Senate Majority Leader Harry Reid, D-Nev., up for re-election in 2010, is trailing two possible Republican challengers. Senate Minority Whip Jon Kyl, R-Ariz., the No. 2 GOP leader, faces the same challenge. Kyl must balance his role as a leading critic of President Barack Obama’s health-care and economic policies and other priorities with Kyl’s duties to Arizona, a once-reliable red state that political experts view as increasingly purple because of changing demographics.

In 2006, the online gambling industry mounted a campaign to educate Arizona voters regarding Senator Kyl’s "nanny state" tactics.  To some degree they succeeded.  The Arizona Star helped spread the word a bit.  And in the end, the race was much closer than had been anticipated.  The problem was more a "weak" Democratic than anything else as Kyl watched many of his Republican colleagues fall like dominoes and lose the Senate majority.

The concern about Kyl now is whether he will somehow manage to negatively impact fellow Senator John McCain’s election campaign just over a year away.  McCain has already announced his intentions to run.

Christopher Costigan, Gambling911.com Publisher

 

 

By SEAN O’SULLIVAN and ADAM TAYLOR

The News Journal 

WILMINGTON — Though federal judges ruled last month that Delaware’s three racinos cannot take single-game wagers this weekend, you can still put cash down on the Eagles to beat the Panthers by 3 points.

You always could.

You also don’t have to go to Atlantic City or wait until next year — when the state expects to launch table games at the racinos — to play poker for money.

Behind closed doors somewhere in the state — in basements and in back rooms of barbershops and restaurants — there is illegal wagering, table games and other gambling going on, just as it has taken place for generations.

And no federal injunction, or team of high-priced lawyers, is going to stop it.

One Wilmington bookmaker said business has been so good for so long that he hasn’t had a real job since 1969.

And although law enforcement used to zealously investigate and bust this kind of activity with "bunco squads," that is no longer the case. Police and prosecutors this week could cite few cases of bookmaking or illegal gambling busts, let alone offer detailed statistics, in the past decade.

This is no doubt because violent crimes like rape, robbery and murder are a much higher priority for strained police forces, but the stigma associated with gambling has also been lifted — despite the fact that problem gambling is still at the root of other criminal activity like fraud and embezzlement after the gambler falls thousands of dollars in debt.

Gambling is now "socially acceptable and legal," in Delaware and virtually every state in the union, said Arnie Wexler a compulsive-gambling expert and lecturer, thanks to the widespread institution of state lotteries in the 1970s.

As a result, a generation is being bred to accept and approve of gambling despite the cost in ruined lives.

And as Delaware launches its first full weekend of legal, parlay wagering on football games since the 1970s, bookmakers in Wilmington expect a windfall from Delaware’s new embrace of gaming, predicting a surge in new bettors who will grow bored with the legal wagers and seek them out for single-game bets.

Wexler said children now regularly see their parents buy lottery tickets and jump up and down when they win a few bucks or a free ticket, "and they think, ‘Wow, this is free money.’ "

"The only difference between an illegal numbers racket and [the lottery] is the state takes a piece of the action," he said.

Because gambling has been made legal and socially acceptable, he said, it is now "a crime no one looks at anymore."

As evidence, he asked, when is the last time someone was arrested for illegal bookmaking? "Did it all of a sudden get better?"

Neither the Delaware State Police, Wilmington police, federal prosecutors nor the Delaware Attorney General’s Office could immediately provide a recent example of a bookie getting busted. After some research, Wilmington police reported a 2007 arrest of a city man for drug trafficking and running a parlay sports betting operation on Lobdell Street.

Deputy Attorney General Richard Andrews, the state’s chief prosecutor who was formerly a federal prosecutor, conceded cracking down on illegal gambling is no longer the priority it once was — like when there were fears of an organized crime push into Delaware in the 1970s.

"I would say, based on the number of cases being brought to us [for prosecution by police] there is no evidence that illegal gambling is a significant problem in Delaware."

He agreed with Wexler that "the more gambling is generally legalized, the more that indicates a kind of societal norm and it is hard to prosecute against societal norms."

When it becomes tough to get a conviction against those norms, police generally follow suit and don’t put their resources into that effort.

The last, high-profile gambling bust that anyone could remember was the February 2008 arrest of Middletown resident Shane Anderson for operating a high-stakes poker game in his home. But that case likely got as much attention for Anderson’s upscale address and the salacious charge that the games also involved topless women serving drinks and dealing cards (something Anderson denies and that was never proved in court after Anderson entered a plea before trial).

Anderson ultimately admitted to two misdemeanors — a tax charge and possessing a gaming "device" of poker chips — served no prison time and paid no fine. His probation allowed him to continue to run a poker business where players win points instead of cash.

Middletown Police Chief Hank Tobin said it was not so much the gambling that was at issue, but the public nuisance that Anderson’s large poker nights were creating in the community, with parked cars clogging streets and generating complaints.

More illegal betting forecast

Gambling opponents like Wexler and illegal bookmakers in Wilmington agree one likely outcome of Delaware’s expansion of gambling will be more people gambling illegally.

Bookies don’t see the state’s entry into sports betting as competition but more like training wheels for first-time gamblers, known as donkeys , who will catch the betting bug at Delaware Park, Dover Downs or Harrington Raceway.

"I think they’ll go there, learn how to place a bet, then come to us," said one Wilmington bookie who works on the west side of Wilmington and who, like all the bookies interviewed for this story, asked not to be identified.

On any given Sunday during football season, this bookie said, he handles a steady stream of customers in person while fielding 60 to 70 calls on four phone lines before the start of the National Football League’s 1 p.m. and 4:15 p.m. games. The routine begins again before the 8:30 p.m. game’s kickoff.

Another bookmaker with customers in northern Delaware and the Philadelphia suburbs believes he won’t have to work as hard to attract new clients. He said the state and its racing casinos will spread a broad net to snare as many novice gamblers as possible, providing him with a much larger client base.

"Why do the pushing when the donkeys will do the pulling?" he said.

Gov. Jack Markell, however, believes the opposite will occur, said his spokesman, Joe Rogalsky.

Instead of running from casinos to bookies, the governor believes new gamblers — and those accustomed to betting through bookies — will prefer the legal option and bring in money to the state, Rogalsky said.

"The activity … will be highly regulated, safe and generate revenue for important government services such as police and education," he said.

Countering that is Gerry Fulcher, a recovering compulsive gambler who has testified as an expert witness in Delaware court cases on the topic.

He believes there’s no question illegal gambling will increase.

"Access always leads to excess," he said. "There will be a lot of collateral damage in the form of curiosity seekers who will develop gambling problems. Sadly, I predict they will be mostly young adults and older people."

Gambling a factor in crimes

While there may have been few arrests over the past decade or two for illegal bookmaking or other gambling operations, prosecutors and police can point to a large number of criminal issues related to problem gambling that have ended up in court, usually involving embezzlement, fraud and theft.

In just the past year, gambling issues have played a role in at least five high-profile criminal prosecutions.

In August, Jody Chubbs, who was sentenced to eight years in prison for stealing nearly $400,000 from her employer, blamed regular gambling at Delaware Park as one of the causes for her embezzlement.

In April, John Henry of Bear was sentenced to a halfway house and home confinement as a part of the prosecution of a wide-ranging marijuana sales and distribution network based in Delaware. Prosecutors said Henry became involved in the illegal operation, allowing his Newark home to be used as a stash house, because he owed a significant sports gambling and drug debt to the drug ring’s operator. Henry also forfeited that Newark home to the government as part of his punishment.

In January, Elkton contractor Carlton Carroll blamed problems with gambling and alcohol for his convictions on home-improvement fraud, where he took money from 16 different people and either never finished work or, in some cases, never started. He was sentenced to 3 1/2 years behind bars.

In December, a long-serving regional manager for Comcast, George Setting — who was in charge of making sure people did not steal cable television service — was sentenced to 15 months in prison for stealing $63,200 from his employer. He blamed gambling on sports and horse racing as the source of his money troubles.

In many of these cases, prosecutors suggested greed more than gambling may have been at issue. But a year ago in federal court, then-U.S. Attorney Colm F. Connolly said sports gambling debts with bookies alone appeared to be responsible for a three-month, 10-bank robbery spree across four states by 23-year-old Johntel Clark.

Clark, of Philadelphia, had no previous criminal history, no problems with drugs, graduated from high school and was honorably discharged from the National Guard.

After his crime spree, which netted about $36,000, Clark abruptly turned himself in to police and offered an immediate confession to all 10 robberies, including ones police had no idea he had been involved in. He then admitted guilt in federal court without any kind of plea deal.

He was sentenced to four years in prison and Connolly said at the time it was "one of the most bewildering cases I’ve had as a prosecutor."

That is the essential difference between going to a bookie and going to a racino — the state’s option is legal and safe while betting through bookies is illegal and potentially dangerous.

And it’s likely there are many more cases like Clark’s that are not reported because illegal gamblers who fall prey to violence when they fail to pay up generally do not report it for fear of more violence, said Master Sgt. Steven Barnes of Wilmington police.

"When you have two people taking part in a criminal transaction like that, it’s not the kind of thing that would typically get reported to police," he said. "If a guy’s getting threatened, the prospect of calling police about it would probably make him fearful that he’d be making the situation worse for himself."

Betting at the state’s racing casinos will remove that threat, said Ed Sutor, chief executive officer at Dover Downs.

"First and foremost, we do it legally, so there’s no worrying whether you’re going to get paid off, or, if you run up a big tab you can’t pay, the other concerns that might come with that," Sutor said.

The atmosphere also will be better, he said.

Instead of skulking in corners or whispering on telephones to place bets, casino gamblers will enjoy the added amenity of an evening out with horse races, table games, restaurant meals and possibly a musical show, supporters say.

"It’s a very communal atmosphere, high-fiving and laughing with all your friends while eating sports-bar finger foods in a first-class facility," Sutor said. "We see groups coming down in buses to our place, which will have a fun, festive and exciting atmosphere."

On the flip side, bookmakers offer convenience, anonymity and, maybe most importantly, credit. They also brag that winners don’t have to pay taxes on their payoffs.

Under the state plan, anyone winning more than $600 will be mailed an IRS tax form. For those winning $5,000 or more, federal withholding taxes will be taken out before the winnings are paid, Rogalsky said.

"People aren’t always going to want to go to the track and I’m always a phone call away if someone is home watching the game on TV and wants to make a bet," the Wilmington bookie said. "And discretion is a very, very important part of my business. Not everyone is going to be comfortable in line with a betting slip in their hand."

The Wilmington bookie, however, said it is a problem when a bettor gets in over his head and doesn’t show up with the money.

"Now, if you don’t pay, we’ll come collecting," he said matter-of-factly.

Social costs outpace revenue

Even when it’s state-sanctioned, betting will never be moral or a moneymaker for governments, Fulcher said.

That’s because problem gamblers who steal from their workplaces take a bigger toll on the economy than whatever amount is raked in by the government, he said. "Theft, welfare, bankruptcies, all that will go up," Fulcher said.

He also doesn’t buy the notion that legal sports betting is another sort of sin tax, which governments often tack onto cigarettes and alcohol products.

"Totally different," he said. "The state doesn’t put up billboards or come up with big expensive promotional campaigns saying, ‘Hey, have a drink today,’ or ‘Don’t forget to puff away,’ " he said. "But they’ll be encouraging sports betting, that’s for sure."

John Warren Kindt, a business and legal policy professor at the University of Illinois, said studies conducted by the University of Nevada at Las Vegas around tribal casinos in Wisconsin — and replicated in other reviews — have shown that people who live near a casino spend 10 percent less on food, 30 percent less on clothing and crime in the area goes up by about 10 percent.

"People lose money and resort to property crime to get more funds. And the taxpayer is paying $3 or more in societal costs for every $1 in new tax benefits," he said.

Keith Whyte, the executive director of the National Council on Problem Gambling, said Delaware should make a commitment to gauge the impact of increased legalized wagering on gambling-related problems.

"We urge the state of Delaware to significantly expand resources for research into problem gamblers and services for them," he said. "If you do research before it starts and track what happens afterward, you could really accurately target services and make the most efficient and effective use of funds. I think there is a real opportunity, if not a responsibility, for the state to do the best job it can to minimize the negative impacts."

Even one of the bookies admitted that gambling is all about chasing an adrenaline high, for bettors and bookmakers.

Sept. 8 (Bloomberg) — Australian billionaire James Packer may seek new U.S. casino acquisitions after raising almost A$900 million ($769 million) selling private assets, according to an analyst at Citigroup Inc.

Consolidated Press Holdings, the Packer family company, is "unlikely" to use the cash to bid for the 64 percent of casino owner Crown Ltd. it doesn’t already own, Jenny Owen, a Citigroup analyst in Sydney, said in a note to clients today.

Packer, who turns 42 today, may take advantage of "rock- bottom prices" as U.S. casino operators struggle with high debt and slumping demand amid a recession, Citigroup said. Gambling on the Las Vegas Strip dropped 15 percent in the 12 months ended June, according to the Nevada Gaming Control Board, with falling valuations causing Crown to write down its existing North American assets by A$1.5 billion in the past two years.

"2010 could prove an opportunistic time to buy U.S. casino assets, as the ongoing downturn could be prolonged," wrote Owen, who rates Crown "hold." "Those assets could then be vended into Crown at a later date and a higher multiple."

Anthony Klok, a spokesman for Melbourne-based Crown, didn’t return a voicemail left by Bloomberg News seeking comment on the report today.

Crown shares rose 3.1 percent to A$8.25 at the 4:10 p.m. close of trading in Sydney. The stock has gained 38 percent this year and has a market value of A$6.3 billion.

"Crown is not cheap at current levels," said Owen.

Packer raised A$396 million last week selling his 21 percent stake in investment manager Challenger Financial Services Group. Packer and Consolidated Press’ Ashok Jacob today resigned from the board of Sydney-based Challenger.

Packer’s Sales

Other Packer sales this year include a Sydney office building for A$50 million and the family’s Australian cattle ranches to U.K. buyout firm Terra Firma Capital Partners Ltd. for about A$425 million.

He may also dispose of his 12 percent holding on property company Sunland Group for A$25 million, the Australian newspaper reported yesterday, without citing anyone.

Crown has been involved in about $3 billion of North American gambling purchases since 2006, buying stakes in Cannery Casino Resorts LLC, Stations Casinos, Harrah’s Entertainment Inc, Canada’s Gateway Casino Income Fund and Fontainebleau Resorts LLC.

The U.S. gambling slump has led to about A$1.5 billion in charges against those investments with Stations and a unit of Fontainebleau in Chapter 11 bankruptcy while Harrah’s Entertainment Inc. offers bondholders new notes with later maturities to cut borrowings.

Crown Chief Executive Officer Rowen Craigie last month described the U.S. expansion as "ill-timed."

"More distress for the U.S. gaming names could create good buying," said Owen. "If there are great buying opportunities opening up now, why share the gains with Crown shareholders."

Crown and Consolidated Media Holdings Ltd. were created in 2007 when James Packer split his gambling and media assets into separate companies, two years after inheriting them upon the death of his father, Kerry.

Packer holds a 41 percent stake in Consolidated, which last month raised A$441 selling its stake in Seek Ltd., Australia’s largest employment Web site.