 |
|
Online Texas Holdem Market - how it all started:
The early pioneers of the Las Vegas Strip had a grand vision that has stood the test of time.
Let people play and they will come and play. Gambling today represents a multi billion dollar
growth industry. In fact more and more it seems that online gambling has now become an
entertainment cost and not so much a gambling cost. Gambling is constantly re-inventing
itself and, with the advent of new technologies and the growth of the Internet, online
gambling is evolving once again. The new breed of pioneers of the electronic Gambling
industry are visionaries who have fused technology with the game to create one of the world’s
fastest growing industries, namely, “Online Gambling”.
There are many great Online Gambling web sites that provide easy access and plenty of fun
for gamblers all over the world. Over the last few years one of the most preferred
online gambling markets has been the online poker sector. Online Poker destinations offer
access to simple to use and fair Online Poker at the highest level of technical and
gambling expertise. As a result of this, online texas holdem has become the game of
choice for many online gamblers. In fact the growth of online texas holdem has reached
heights that were not expected soon after an online poker player named Chris Moneymaker
won the World Series of Poker tournament in 2003. It was the first time that an online
poker player won the biggest prize in poker and it marked a change in access to the biggest
poker tournament in the world.
Where is poker headed, and why do people like to play:
The greatest benefactor of the Online Gambling boom is the game of Poker. According to
Poker Pulse, an online poker resource site, “Poker is the product that seems to be the
current guarantor of future online growth rates. What began as triumphant advance in
the USA is now leading to a global Poker wave on the Internet.” More than 60% of the
industry experts surveyed believe that Online Poker will be the dominant offering in
Online Gaming by the year 2015. Additionally, according to research conducted by the
“Online Casino Report”, the amount generated via Online Poker websites around the world
in 2010 is estimated to be more than $120 Billion, and the commission revenue is estimated
to be more than $10 Billion.
The popularity of the game of Poker is not new; however, recent trends have brought this
popularity to the forefront of global awareness. Besides the improvements of online
technology and the increasing Internet connection speeds, the most notable trend is that
Poker WSOP episodes are currently the most popular television programs and some of the most
popular form of reality television. Poker players are now becoming celebrity brands and
poker is becoming the household sport of choice. As a result, consumer demand for Online
Poker has exploded and is growing at a double digit rate.
The Online Poker market is projected to remain a fast growing segment of the Online
Gambling Market over the next five years. With the combination of land based players
migrating to online play and the attraction of new poker players. It is estimated that
the Online Poker market will increase from approximately $9 Billion in revenues in
2009 to approximately $12 Billion in revenues by 2012.
The Global Online Gambling Market:
The Global Online Gaming market has experienced rapid growth since its establishment in
the 1990’s but remains relatively immature. Although estimates as to the current size and
growth rates of the global Online Gambling market vary considerably, it is estimated by
Christensen Capital Advisors, LLC that the market generated revenue of approximately
$8 Billion in 2004, represented just over 3% of the total global Gambling market in
2004. In 2004, Casino and Bingo games represented 29% of the Online Gaming market, and
poker represented approximately 13%. For the five year period from 2005 to 2010, it is
estimated that revenues generated by the global Online Gambling market will increase to
approximately $20 Billion, of which $10 Billion will come from Online Poker alone. On
this basis, the global Online Gaming market would still only represent under 8% of the
total global Gambling market in 2010. Some people would say there is room for growth
while others would say this is a market still in it's infancy stages. We believe that
as world wide governments turn to online gambling for a source of tax revenues only
then will we see the real numbers behind online gambling.
Who will Win:
The winners in the Online Poker industry will be those companies that are unique
in offering, are able to reach the masses, and offer a reliable, secure, fun, and
Interactive gaming extravaganza, and those that forge relationships with State and Federal
agencies who license and regulate online poker. As with any online company, a successful
business strategy must focus on delivering long-term customer value in an effort to satisfy
both shareholders (investors) and stakeholders (non-investors with active interest in the
company’s growth and success).
The best Operating Strategy:
The new breed of online poker offering will build an operating strategy on player
loyalty and player loyalty programs. Eventually all sites will offer live play with
online simulated play and this will be the big ticket that brings the large players
into online poker and online gambling. We look forward to that day.
Statement of Congressman Ron Paul - July 2010
House Committee on Financial Services Hearing on HR 2267: the Internet Gambling Regulation, Consumer Protection, and Enforcement Act
Thank you Mr. Chairman for holding this hearing on HR 2267, the Internet Gambling Regulation, Consumer Protection, and Enforcement Act. While it is out of character for me, to say the least, to support a bill that regulates private transactions, I support HR 2267 because it repeals the ban on Internet gambling. The bill does not create any new federal laws; it merely establishes a process to ensure that gambling sites can comply with existing laws, and thus offer their services to adults who wish to gamble online.
The ban on Internet gambling infringes upon two freedoms that are important to many Americans: the ability to do with their money as they see fit, and the freedom from government interference with the Internet.
The proper role of the federal government is not that of a nanny, protecting citizens from any and every potential negative consequence of their actions. Although I personally believe gambling to be a dumb waste of money, American citizens should be just as free to spend their money playing online poker as they should be able to buy a used car, enter into a mortgage, or invest in a hedge fund. Risk is inherent in any economic activity, and it is not for the government to determine which risky behaviors Americans may or may not engage in.
The Internet is a powerful tool, and any censorship of Internet activity sets a dangerous precedent. Many Americans rely on the Internet for activities as varied as watching basketball games, keeping up on international news broadcasts, or buying food and clothing. In the last few years we have seen ominous signs of the federal government's desire to control the Internet. The ostensible reasons are to protect Americans from sex offenders, terrorists, and the evils of gambling, but once the door is open to government intrusion, there is no telling what legitimate activity, especially political activity, might fall afoul of government authorities.
The ban on Internet gambling also forces financial institutions to act as law enforcement officers. This is another pernicious trend that has accelerated in the aftermath of the Patriot Act, the deputization of private businesses to perform intrusive enforcement and surveillance functions that the federal government is unwilling to perform on its own.
Mr. Chairman, while I am willing to support HR 2267 as a means to repeal the total ban on internet gambling, I urge my colleagues to oppose any attempt to tax internet gambling. Taxing any commercial transition, including gambling, is an unwarranted expansion of the taxing power and will cripple the development of internet commerce. Furthermore, since the power to tax is the power to destroy, imposing taxes on internet gambling could simply morph into a backdoor way of banning gambling on the internet. If opponents of the internet gambling ban are serious about expanding individual liberty, they will oppose restricting the freedom of internet users to do what they want with their time and property by imposing taxes on the bill.
In conclusion, I urge my colleagues to support Chairman Frank's HR 2267. While not perfect these bills will take a step toward liberty by restoring the right of Americans to decide for them whether or not to gamble online.
Statement of Ms Annie Duke - Professional Poker Player
TESTIMONY OF ANNIE DUKE on behalf of THE POKER PLAYERS ALLIANCE
HOUSE COMMITTEE ON FINANCIAL SERVICES - “H.R. 2267, Internet Gambling Regulation, Consumer Protection,
and Enforcement Act” - July 21, 2010
Chairman Frank, Ranking Member Bachus, and Members of the Committee, I would like to thank you for this opportunity to testify regarding H.R. 2267, the Internet Gambling Regulation, Consumer Protection and Enforcement Act. My name is Annie Duke, and I am a professional poker player. In fact, I have just returned from the World Series of Poker in Las Vegas, which is now the third most watched sporting event in the world. This year’s World Series of Poker experienced a 20 percent increase in participants from 2009 – much of this growth is driven by the popularity of Internet poker here in the U.S. and across the globe.
I am here today to testify on behalf of the Poker Players Alliance, a grassroots organization of 1.2 million people who play poker in their homes, in card rooms and casinos, at bars, and charitable events, and on the Internet. To be sure, the organization was founded in response to efforts to prohibit poker playing on the Internet, but, our organization believes that the medium is irrelevant; our focus is the game.
As a professional poker player, I am aware of the rich tradition this great American game has in Washington politics. Ulysses S. Grant was the first president known to have played poker, a game he learned in the army, and he was by no means the last. Warren Harding played twice a week. Teddy and Franklin Roosevelt, Dwight Eisenhower and LBJ were skilled players.
Richard Nixon used his poker winnings from his navy days to finance his first campaign for Congress. Harry Truman’s signature phrase, “the buck stops here” is a poker expression he learned playing the game. Today, such Washington leaders as President Obama and Justice Scalia continue that tradition. These leaders and millions of everyday Americans play for recreation and relaxation, for intellectual challenge and stimulation, for fun and profit.
But at stake in this debate is a far more important tradition for our country and its government. At its most basic level, the issue before this committee is personal freedom -- the right of individual Americans to do what they want in the privacy of their homes without the intrusion of the government. From the writings of John Locke and John Stuart Mill, through their application by Jefferson and Madison, this country was among the first to embrace the idea that there should be distinct limits on the ability of the government to control or direct the private affairs of its citizens. More than any other value, America is supposed to be about freedom. Except where one’s actions directly and necessarily harm other people’s life, liberty or property, government is supposed to leave the citizenry alone in this country. In fact it was Ronald Reagan who once said “I believe in a government that protects us from each other. I do not believe in a government that protects us from ourselves.”
To be sure, there are many who believe that gaming is immoral or unproductive. I don’t share these beliefs, but I do respect their right to hold those beliefs. What is harder to respect is the idea that, because someone disapproves of a particular activity, they would seek to have the government prevent others from engaging in it.
I believe that many of those who seek to prohibit Internet gaming and Internet poker are motivated by good intentions; to protect the roughly 1% of people who are subject to pathological gambling, and to prevent minor children from gambling online. I, for one, do not agree that it is appropriate to circumscribe the activities of all adults to protect against the weaknesses of a few; this was governing principle behind alcohol prohibition and it failed miserably.
But the good news is that public policy need not decide between respecting individual freedoms and protecting vulnerable populations in the context of Internet Poker. Both of these goals are best served by appropriate licensing and regulation, and this is exactly what H.R. 2267 proposes.
To be clear, H.R. 2267 is not a bill that expands Internet gambling in America. It simply provides the appropriate government safeguards to an industry that currently exists and continues to grow.
As you are probably aware, on June 1st the regulations issued pursuant to the Unlawful Internet Gambling Enforcement Act took effect. You may also know that they have had very little effect on the Internet gaming market. Today, any American with a broadband connection and a checking account can engage in any form of Internet gambling from any state. As others will testify, the UIGEA regulations have forced U.S. financial institutions to implement costly and burdensome compliance programs to almost no effect.
American poker players are not content with a system where they are limited to play on offshore sites regulated by foreign governments. They want to play on sites licensed in the United States, which will provide even greater consumer protections for the player and yield badly-needed tax revenue for state and federal governments.
Under a U.S.-regulated system, an authorized licensee would be required to have technologies in place to prevent minors from playing; identify and restrict problem gamblers, and keep people from opt-out states from playing online. Further, regulation would eliminate any concerns about money laundering. Through regulation, a licensed site would be required to adopt the same stringent and effective anti-money laundering measures as banks have in place today.
As a mother of four, I am acutely aware of the need to protect children on the Internet. Those of you who attended the last Committee hearing on this topic heard Parry Aftab from “Wired Safety” -- the foremost advocacy group for child safety online -- testify that the surest way to protect children in the context of Internet gambling is to bring the industry on-shore and regulate it. It is plainly clear, if you want to protect children, then regulation is the best solution; if you oppose gambling and want to treat adults like children, then you will resort to a misguided prohibition.
For me, the most critical component of regulation is player protections. As some of you know, I play at a site called Ultimate Bet. Under previous management, an associate of the website developed a breach in the software that allowed for players to be cheated out of a great deal of money. I agreed to continue to endorse the site only after I was sure that new management had addressed the problems, took voluntary steps to refund the cheated players and ensured tighter control over their site security. Nonetheless, an important benefit of regulation would be to ensure, through source code-based testing and outcome-based testing, that the games are fair and those players cannot be defrauded by the sites and that players cannot cheat others at the table.
Further, under a U.S. regulated system players would have legal recourse should they feel they are harmed and regulators would be able to penalize licensed companies that breach the regulatory standards. Today, the best non-U.S. licensing regimes already do this, but, U.S. players deserve the protections and assurances of their own government. Interestingly, the current law provides no consumer protection whatsoever. The UIGEA does not keep a single child off an internet gaming site, nor does it provide any protections for problem gamblers or mechanisms to prevent fraud and abuse – it only regulates the banks, not those who operate the games. It is quite candidly a law that appears to be more about burying government’s head in the sand than it is about government providing its citizenry with sensible public policy. H.R. 2267 corrects this untenable posture and puts us in the greatest position to protect consumers and vulnerable populations.
Mr. Chairman, I would like to close with the point I started with: this issue is about personal liberty and personal responsibility -- the freedom to do what you want in the privacy of your own home. I suspect that some on this committee support freedom, except where individuals would use that freedom to make what they believe to be bad choices. “Freedom to make good choices” is an Orwellian term for tyranny-- the governments of China, Cuba and Iran all support the freedom of their citizens to make choices that their governments perceive as good. For those whose religious or moral beliefs hold gaming as abhorrent, I fully support their right to live by those beliefs. I support their right to choose to not gamble. What I do not support, and what this Committee and this Congress should not tolerate, are laws that seek to prevent responsible adults from playing a game we find stimulating, challenging and entertaining. H.R. 2267 provides this freedom in a safe and regulated environment and I urge everyone on this Committee to support this common sense policy. However you might feel about gambling on the Internet, I would suggest that gambling with freedom is far more risky.
Again, Mr. Chairman and members of the Committee, I thank you for the opportunity to address you today. I look forward to the testimony of my fellow panelists and the opportunity to engage with you during the question and answer period.
|
|
|
 |
|
|
 |
