Sports Betting Exchange A.C.

http://www.pressofatlanticcity.com/news/breaking/new-jersey-s-sports-betting-case-advances-in-federal-court/article_b23544d2-90b9-11e2-9bc9-001a4bcf887a.html#.UUiurGk11-A.twitter

By HOA NGUYEN, Staff Writer

New Jersey’s attempt to overturn a federal court decision barring it from authorizing sports betting is proceeding in the U.S. Court of Appeals with judicial officials opening a docket for the case Monday.

State officials, who filed a notice of appeal last week, will have two weeks to submit documents, including a concise summary of the case, to the appeals court, according to judicial filings.

New Jersey is appealing a February decision issued by U.S. District Court Judge Michael Shipp, who granted a permanent injunction barring the state from authorizing and regulating sports betting. Shipp sided with the five professional and amateur sports organizations and U.S. Department of Justice, which argued New Jersey was violating a federal law barring states from authorizing sports betting in all but four jurisdictions where the activity was legal prior to the legislation’s enactment in 1992.

http://www.reuters.com/article/2013/03/14/us-usa-florida-lieutenantgovernor-idUSBRE92D1BL20130314

By Bill Cotterell

(Reuters) – The resignation of Florida’s lieutenant governor, Jennifer Carroll, and the arrests of 57 people charged with money laundering and racketeering has sparked a stampede in the state legislature to shut down hundreds of “internet cafes,” whose online gambling operations have been allowed to skirt the law for several years.

While they try to distance themselves from the storefront sweepstakes, political leaders are also trying to scrub their campaign-finance reports of any contributions from companies associated with Allied Veterans of the World, the non-profit operation at the center of a massive fraud investigation.

….

Internet cafes sell phone cards or internet access that customers can use on-premises, often to gamble online, playing electronic slot machines or poker, among other games. Winnings and losses are recorded on an access card, which can be cashed out when a player leaves an establishment.

By HOA NGUYEN Staff Writer

http://www.pressofatlanticcity.com/communities/atlantic-city_pleasantville_brigantine/revel-filings-include-plan-to-use-possible-future-tax-breaks/article_d1862b96-8cde-11e2-b5bf-001a4bcf887a.html

Revel wants to earmark $70 million in possible future state tax breaks to satisfy some of its debts as part of a bankruptcy deal the casino is pursuing, the company said in financial documents filed Thursday.

But the state Economic Development Authority said no taxpayer money is at risk and officials will work to limit any possible exposure.

…….

As part of the bankruptcy deal, Kevin DeSanctis steps down as chief executive officer of Revel and is replaced by consultant Jeffrey Hartmann in the interim.

DeSanctis and Michael Garrity, who also would step down as chief investment officer, however, will remain working for Revel, according to the SEC filings. The two will assist with Revel’s Chapter 11 case, negotiate and implement online gambling and sportsbook and assist with the completion of a high-limit slot area and players lounge, HQ beach day club, a three-meals-a-day restaurant and noodle bar. They will be paid $5.4 million for their services, according to the filings.

By DONALD WITTKOWSKI Staff Writer

http://www.pressofatlanticcity.com/news/top_three/revel-can-be-fixed-casino-analysts-executives-and-officials-say/article_dd32a27c-8c47-11e2-9683-0019bb2963f4.html

That’s the belief of analysts, casino executives and political leaders. Although they said Revel’s problems are serious, they are not insurmountable.

They also predicted that the $2.4 billion luxury megaresort may yet fulfill its promise to expand the Atlantic City market now that new management has taken over.

Revel made a series of missteps, including pursuing a marketing strategy that may have overlooked or outright ignored key segments of the city’s customer base, analysts noted.

Whelan was referring to Kevin DeSanctis, the CEO who built Revel but stepped down Wednesday in a management shake-up. Jeffrey Hartmann, a 20-year veteran of the casino, hospitality and leisure industry, has taken charge as Revel’s interim CEO.

http://www.businessweek.com/articles/2013-03-01/new-online-gambling-rules-might-bring-back-intrade#r=lr-fst

By Elizabeth Dwoskin on March 01, 2013

As of early November, 2012 was looking like a great year for Intrade. Traders on the online market where people bet money on political contests had accurately predicted the results of the presidential race for the second time in a row. Then Intrade’s fortunes turned. On Nov. 26, the Commodity Futures Trading Commission sued the Dublin-based company, accusing it of operating an illegal exchange. Intrade immediately barred U.S. customers from the site. Since the company had previously told me most of its users are in the U.S., I wagered in an article that it was doomed.

Turns out that may have been a bad bet.

This week, New Jersey became the third state, after Delaware and Nevada, to pass an online gambling bill. This came thanks to a complete reversal in policy at the U.S. Department of Justice. For years the agency had said online gambling was illegal—a violation of the Wire Act of 1961 that bans betting across state lines—and had prosecuted the owners of online gaming sites. Then late last year it told states wanting to start online lotteries that the Wire Act applied only to sports betting and not to other games. Industry observers were shocked. “The Justice Department came out 180 degrees opposite of where it was before,” says David Stewart, a lawyer specializing in gambling law at Ropes & Gray. “I’ve never seen that.”

….

The Nevada statute allows 20 games, including community poker and craps. Companies that want to start gambling sites for games not on that list can seek special permission for a license from the Nevada Gaming Control Board. “There’s nothing that would stop Intrade from getting a license in the state of Nevada,” says Anthony Cabot, a Las Vegas lawyer who specializes in gambling law.

http://www.gaming-awards.com/NEWS/archives/19853?goback=%2Egde_1874456_member_221961919

In the latest turn of events in the American Gaming Associations (AGA) opposition to PokerStars proposed purchase of the Atlantic Club Casino in Atlantic City, PokerStars has appealed the AGA opposition in a 15 page letter to the New Jersey Division of Gaming Enforcement.

According to Journalist John Brennan for the Meadowlands Matter a daily sports blog, the online poker giant has requested that New Jersey regulators ignore the AGA’s request to participate in the proceedings.

PokerStars says in the letter according to the blog that “the AGA lacks a ‘significant interest in the outcome’ of the proceedings, is not likely to add constructively to their case & its participation would be destructively anti-competitive thereby doing a disservice to the people of New Jersey.”

Lawyers for the company say that the Division of Gaming Enforcement can deliver its own verdict “without the unsolicited assistance of a self-appointed group of Rational’s competitors” & that the AGA’s sole interest in the issue is purely “economic warfare”.

http://www.miamiherald.com/2013/03/13/3283274/lt-gov-jennifer-carroll-resigns.html

BY TIA MITCHELL

HERALD/TIMES TALLAHASSEE BUREAU

http://www.rockymounttelegram.com/business/sweepstakes-cafes-remain-open-now-1840311

By John Henderson

The Rocky Mount Police Department has continued to allow Internet sweepstakes cafes to remain open nearly two weeks after threatening to close them down.

A few of the cafes shut down after the N.C. Supreme Court upheld a state law banning the video games. Several other cafes closed temporarily and reopened with new software that store owners said complied with the law.

The new software reveals to a customer whether they have won a prize before they play any games. Customers also receive Internet time for their money. Prior to the software changes, the customers had to play games, which usually involve matching numbers or symbols on a spinning wheel, to learn if they had won a prize.

A legal challenge to allow the new form of software came to an end Monday.

Davidson County sheriff’s deputies charged the operators of a cafe in Midway with illegal possession of electronic machines and other devices for sweepstakes. The move came after the N.C. Supreme Court said a 2010 law banned the machines.

http://www.miamiherald.com/2013/03/07/3272526/njs-christie-committed-to-sports.html

BY DAVID PORTER

ASSOCIATED PRESS

http://www.forbes.com/sites/nathanvardi/2013/03/05/the-battle-for-online-poker-between-pokerstars-and-caesars-entertainment-goes-to-new-jersey/?goback=%2Egde_3295385_member_220664610

Nathan Vardi, Forbes Staff

“Caesars Entertainment approached PokerStars and offered to sell us certain assets, such as the Rio Casino in Las Vegas. Caesars suggested that this acquisition would give us a better relationship with Caesars and would help PokerStars gain a license in Nevada,” said Eric Hollreiser, a PokerStars spokesperson, in a statement. “PokerStars declined the offer because we had no plans to acquire another casino in the near term.”