Josh Andrews

Online Poker Finally Making a Comeback to the United States

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Seven years ago, on April 15, 2011, the United States Department of Justice effectively shut down the country’s online poker industry citing various illegal gambling and money laundering concerns. Since then, the quest to reinstate online poker in the U.S. has been quite daunting but the situation has taken a turn for the better. On May 1, the online poker industry finally began the journey towards the eradication of state-segregated online poker markets. Now, online poker players in the states of New Jersey, Delaware and Nevada are able to play legally against each other on World Series of Poker (WSOP.com) and 888Poker networks.

While only the three states mentioned above are able to participate in the shared liquidity online poker, for now, the combination of the player pools is certainly a huge step forward for the market. In fact, it is just what the U.S. poker industry needs to gain some traction – more states, Pennsylvania included, are expected to join in soon and a number of other operators, such as PartyPoker, have shown interest in jumping into the online poker liquidity bandwagon.

“It’s a monumental day for online poker in the United States,” said Bill Rini, WSOP.com’s Head of Online Poker. “This is truly a game-changer for players and we hope is the model blueprint for additional states to join the fray.”

What to Expect

The immediate culmination of the multistate share liquidity will be larger player pools which will, in turn, culminate into larger prize pools. Eventually, the larger prize pools will draw in more players and this creates a growth cycle that in essence, could contribute to exponential growth in the United States online poker market since it will undoubtedly impact the directions of similar legislation in other states.

Pennsylvania is in the process of launching its online poker industry and as mentioned earlier, all signs point to the possibility that it will eventually join the Multi-State Internet Gaming Association when it goes live.

In addition to this, liquidity sharing implies that the poker market will be more appealing to poker players as the operators strive to offer them wider selections of games and tournaments, wider time zone coverage and bigger prize pools. It is basically a win-win situation for nearly all stakeholders including the states themselves – a sustainable and viable online poker market means that the state will be raking in more revenue in tax dollars from the online poker industry. Online poker operators that do not get join the pool or find viable countermeasures are likely to get downtrodden, but they still have a bit of time to adjust appropriately.

Bitcoin Trading Is Coming to Goldman Sachs

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Bitcoin and other decentralized digital currencies seem to be back on track on the road towards to mainstream adoption thanks to recent developments such as the plans by Reddit to reinstate bitcoin as a payment option – more cryptocurrencies will be accompanying bitcoin when it returns as a mode of payment on Reddit. But that is not all. Now, Wall Street giant Goldman Sachs is taking the next leap into the crypto space according to a May 2 report from the New York Times.

The investment bank will soon begin trading bitcoin futures for its clients while at the same time offering its so-called non-deliverable forwards which is a derivative product that the bank will be bringing to cryptocurrency users. The non-deliverable forward will involve trading of bitcoin without physical exchange of the underlying asset. Instead, it will involve the exchange of the currency it is quoted on the settlement date for the forward.

Since most of the leading financial institutions have tried as much as possible to distance themselves from bitcoin and most, if not all, other cryptocurrencies, the move by Goldman Sachs is very likely to lend some legitimacy to digital currencies. Still, it will certainly spawn a number of new concerns for the investment bank as it is about to begin using its own money to trade with clients in a range of contracts all linked to bitcoin’s price. Thanks to this, the bank is still quite guarded.

While there has been both internal and external skepticism, there is nearly an equal measure of support for the bank’s initiative. Mathew Newton, an analyst at eToro, a cryptocurrency retailer believes that considering the way things have been in the crypto world in the past 18 months, the move by financial institutions to join in should not come as a surprise. According to the analyst, any forward-looking financial institution must endeavor to not only understand the technology behind cryptocurrencies but also acknowledge its huge potential.

“Despite some initial posturing, the reality is most big banks have already invested significant amounts in research and development into blockchain technology, and cryptocurrencies themselves. It will still take time for institutional investors to fully come around – and the fact that Goldman won’t be buying or selling actual coins suggest some skepticism remains – but there’s a growing acceptance that these assets are here to stay,” Newton said.

Goldman Sachs is likely to begin directly trading cryptocurrency once there is more regulatory certainty surrounding bitcoin and other decentralized digital currencies.

LeoVegas Online Casino Fined for Accepting Bets from Addicts

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LeoVegas, an online casino operator that is licensed and regulated by the UK Gambling Commission, has been fined £600,000 for failing to refund the deposits of over 11,000 problem gamblers who had requested to be barred from participating in the games the operator offers. The fine was imposed by the UK Gambling Commission which about a month ago also imposed a £1 million fine on Sky Bet for similar transgressions.

The rollout of a planned industry-wide self-exclusion scheme that has been delayed for a while now constitute a majority of LeoVegas online casino’s failings – the scheme would allow gamblers who were developing addictions to voluntarily bar themselves from placing bets with any gambling operator under the gambling commission’s jurisdiction.

The regulator conducted an investigation whose findings revealed that 1,894 LeoVegas online casino customers were deliberately targeted by marketing material that was sent directly to them even though they had already signed up to the platform’s self-exclusion scheme. Also, the online casino allowed over 400 of its customers to bet £200,000 over two months without any intervention by the company – the company did not even advise them to apply for its 24-hour “cooling-off” period.

Moreover, the commission also found that the online casino failed to return funds that were deposited by 11,205 customers who had chosen to self-exclude and close their accounts. However, as part of the settlement, the casino will be returning more than £14,000 to the affected customers. The fine that was imposed on LeoVegas also happens to encompass 41 misleading advertisements that it had issued between April 2017 and January 2018 including adverts that failed to mention the restrictions that were part of certain promotions offered by the platform.

“The outcome of this case should leave no one in any doubt that we will be tough with licenses holders who mislead consumers or fail to meet the standards we set in our license conditions and codes of practice,” said Neil McArthur, the UK Gambling Commission’s chief executive. “We want operators to learn the lessons from our investigations and use those lessons to raise standards.”

Despite having been fined by the Gambling Commission, the company has continued to post positive numbers and reports for year on year growth. In the first quarter of this year, for instance, the operator’s revenue went up 76 percent to a whopping £ 68.2 million. Everything is about to get better for the company regardless of the fine since its management has expressed “high ambitions for compliance with laws and regulations” so as to continuously improve its processes and procedures.

“We have had discussions with the UK Gambling Commission, UKGC, on suspected cases of breaches of the British gaming rules. A clear majority of cases are attributable to affiliate marketing. It’s good that UKGC puts increased demands on us in the gaming industry. It is an advantage for serious actors who both have the will and ambition to work in a regulated market,” LeoVegas online casino’s officials commented.

ZeroEdge.Bet to Launch Its Second Pre-ICO Offering on June 1

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Renowned blockchain based online casino platform ZeroEdge.bet will be launching the second part of its Initial Coin Offering (ICO) on June 1 with a whopping 58 percent discount bonus. Even though there is still some doubt pertaining to the true nature of the platform, it has always been set to revolutionize the online gaming industry with its unique approach.

The platform made its mark by offering its games at zero percent house edge (hence its name) at a time when all other online casino sites were offering casino games that came with house edges ranging between 1 percent and 10 percent. Therefore, unlike its online game provider counterparts, ZeroEdge.Bet’s games give players fair chances of winning, for free!

“We can see why other blockchain-based gambling projects haven’t penetrated the market, so we want to come in well-prepared to be among the first to do this. We believe the experienced team and accomplished advisors are the keys here,” said Adrian Casey, the ZeroEdge.Bet CEO. “Zero Edge offers a unique gambling model which potentially could revolutionize the $70 Billion gambling industry. Players won’t be losing money but instead earning from the increasing Zerocoin value. Our ultimate goal is to become a leading gambling platform in the online gambling industry where thousands of different games are played each day using Zerocoin and where players have the best chance of winning.”

The platform operates on a closed loop economy that is driven by the high demand for zero percent games which in turn results in the increase in demand for Zerocoin, the company’s in-house digital currency. With this revolutionary gambling model in place, gamblers who choose the platform will not lose money but instead gain the value of Zerocoin increases.

The Zerocoin Token will be availed to interested investors during the planned Initial Coin offering (ICO) at the beginning of next month if everything goes as planned.

Premier League Supports US Sports Betting Expansion

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The English Premier League recently voiced its support for the vision that the NBA, MLB, and PGA Tour have had for the expansion of sports betting in the United States in the likely case that the country’s Supreme Court abolishes the Profession and Amateur Sports Protection Act (PASPA) which prohibits all but four states from legalizing sports betting. The United States Supreme Court is expected to deliver the much-anticipated ruling by the end of June but already various stakeholders are preparing for a future where sports betting is legal.

The National Basketball Association, the Major League Baseball (MLB) and the PGA Tour have all backed the idea of legalized sports betting – the NBA and MLB have even outlined some of the potential laws and terms they expect to be implemented should sports betting be legalized. Some of these potential laws will require sports betting firms to use official league data, share customer data and pay an “integrity fee” as well as allow the leagues to have an input on the wagering options the sportsbooks can offer.

The English Premier League (EPL) through Adrian Ford, Football DataCo general manager has made it public that it would support the approach by the NBA and MLB – Football DataCo is the official rights-holder for the Premier and League as well as all the other professional football leagues in England.

“Broadly, we don’t think what the leagues are asking for is fundamentally wrong, if you’re trying to come up with a framework that works for both parties,” Adrian Ford said in an interview with ESPN.
“We would not see why there would be an issue about sports getting a return from betting. We’d echo some of the high-level statements the NBA has made. If someone is making money off us, there’s no reason why we shouldn’t be interested in that and why we shouldn’t have some level of involvement in the commercial return. It’s clearly not what we have here.”

Why Is the EPL Interested?

It is no secret that betting has been a key component of the English Premier League’s operation. As such, it would not come as a surprise when it joins the parade of United States professional sports leagues that are currently seeking a revenue cut from sports betting operators

“When it comes to customers and integrity and really trying to provide the best experience, official data, backed by the leagues, is fact; you need a gold standard,” Ford added. “Ultimately, the common goal – and it is easier said than done – must be to have a functioning, regulated, safe betting market that brings all the offshore money onshore for the good of the sport, for the protection of the players and presumably for the good of the states that are going to get tax revenues.”

The involvement of the EPL sets a precedent for the leagues being granted control over data rights in the United States which will be a win for all of them.

Saudi Arabia Debuts Its First Professional Esports League

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In October 2017, the Saudi Arabian Federation for Electronic and Intellectual Sports (SAFEIS) was initiated and since then, it has already been able to hold two major Esports events. Now, the federation has signed a memorandum of understanding (MoU) with the Saudi Arabian Football Federation that will see to the development of the first Electronic Saudi Professional League (ESPL).

“Here in the Kingdom we have great talent, and our duty toward (it) is providing these platforms where the best come to shine. We are also on a mission to grow the eSports economy and industry,” Prince Faisal bin Bandar bin Sultan, the SAFEIS president said. “This is a major step toward positioning the Kingdom as a major eSports hub in the Middle East and the world.”
“My message to all the gamers: Today you might be an amateur, but if you work hard and compete you can become an athlete,” he added. “Here in the Kingdom we have great talent, and our duty toward is providing these platforms where the best come to shine. We are also on a mission to grow the eSports economy and industry.”

According to Arab News, the partnership which was signed by the SAFEIS and the Football Federation presidents – Prince Faisal and Adel Ezzat respectively – came on the final day of the GSA FIFA 18 Tournament. The eight finalists in this tournament were competing for one of the seats of the EA SPORTS FIFA 18 Global Series qualifier.

The partnership between the federations has been lauded by the vice president of the General Sports Authority, Prince Abdul Aziz bin Turki Al-Faisal who went ahead to point out that it was certainly a major leap for country’s Esports industry. In addition to this, he promised to offer his sport to both federations as they move forward with their plans.

France Lowers Crypto Taxes, Labels Them ‘Moveable Property’

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According to April 26 report from Le Monde, a local news outlet in France, the Conseil d’Etat (Council of State) of the country has lowered the tax rate on cryptocurrencies from the initial 45 percent to a flat rate of 19 percent. In addition to this, all the profit that will arise from cryptocurrency sales will be considered as capital gains of ‘moveable property’ as stipulated by the new regulations. This move follows the reclassification of bitcoin that is separate from commercial and non-commercial activity.

According to the Council, “The sale of ‘bitcoins’ [fell under] the principle from the category of capital gains of movable property.”

The news report also mentioned that the Council of State’s decision was partly motivated by an appeal that was filed earlier this year to the country’s highest regulatory body. The appeal sort to have the harsh regulations reviewed and changed so as to ensure the survival and growth of the French crypto industry.

Profits amassed from cryptocurrency mining will, however, be exempted from this and they will, therefore, incur higher tax rates as they are still considered to be industrial and commercial profits. These harsh cryptocurrency-focused tax rules that initially encompassed all transactions came to be in mid-2014. Four years down the line, Bruno Le Maire, France’s economy minister, assembled a task force for the sole purpose of scrutinizing the state of cryptocurrency regulations in France.

“Our goal is to provide legal certainty for those who seek it, without hindering those who want to follow their own path. We have a rather liberal approach. We work for a flexible, non-dissuasive framework. At the same time, we are not naive either, we know that these products can be risky” noted the finance ministry.

Other than the finance ministry’s efforts in putting together a task force to review the country’s cryptocurrency regulations, it has also been reported that it the financial market regulator has been considering legislation that would foster the development of Initial Coin Offerings (ICO) in France.

Belgium Gambling Laws Declare Video Game Loot Boxes Illegal

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Loot boxes have had a pretty rough time in the past couple of months and the troubles are not likely to go away anytime soon. Just recently, the Netherlands declared that loot boxes constituted gambling and were therefore illegal and now Belgium has made a similar move.

Following an investigation that the Belgian Gaming Commission had been conducting on some popular video game titles including FIFA 18, Counter-Strike: Global Offensive (CS: GO) and Star Wars Battlefront 2, the Belgian minister of justice, Koen Geens, on April 25 announced the results. Of the four video games, only Stars Wars Battlefront 2 was not in violation of the Belgian gambling legislation but this is only because EA, the company that develops Star Wars, removed loot boxes from the game after some debacles when it was launched.

OverWatch, CS:GO and FIFA 28, on the other hand, still had loot boxes which under Belgian gambling law are considered to be games of chance. As such, so long as they contained the loot boxes the games were illegal and they are forced to remove the loot boxes or “risk a prison sentence of up to five years and a fine of up to 800,000 euros.” The penalties could be doubled in cases where minors are involved.

“Mixing games and gambling, especially at a young age, is dangerous for mental health,” Geens said. “We must ensure that children and adults are not presented with games of chance when they are looking for fun in a video game.”

Loot boxes are by no means a new concept in mobile gaming applications but the recent upsurge in their inclusion in console-based video games have become a huge concern for parents as well as many other responsible parties. Furthermore, the gaming community has been very welcoming to initiatives that seek to have the insidious inventions removed from their games.

While regions like the US and the UK have Okayed the use of loot boxes, the declaration that they are illegal in the Netherlands and Belgium has presented what can be referred to as a dramatic turn for the video game loot box issue. If anything is to go by, game developers in the whole of Europe may be forced to make significant changes to the way the games they develop work, especially because more countries in the continent could launch similar initiatives.

Unlike the case in the Netherlands, Belgium has not imposed a deadline for the implementation of the necessary changes. Geens hopes to approach this is in a different way and this will involve dialogue between the country’s gaming commission and the affected video game developers.

Japanese Government Approves Bill Paving Way for Casinos

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On Friday, the Japanese government put aside gambling addiction and antisocial behavior concerns and went ahead to approve a bill that will provide a broad regulatory framework that will foster the establishment of a casino industry in the country. All that remains is for the document, which is referred to as the Integrated Resorts (IR) Implementation Bill, to be passed the Diet voting – the Diet is Japan’s parliament.

According to Kyodo News, Japanese Prime Minister Shinzo Abe and his government are aiming to have the bill pass the Diet during the ongoing session that will end on June 20. The Prime Minister hopes that the new casino industry will serve as an attraction for more overseas visitors which will, in turn, assist in providing the much-needed boost to the country’s regional economies outside Tokyo.

However, regardless of how promising the bill is, there is a high likelihood that deliberations will not have ended by the time the Diet sessions ends in June. This is due to the existence of a number of political scandals involving Prime Minister Abe, his minister as well as some ministry officials that have had a disruptive effect on Japan’s parliamentary proceedings.

“We will promote tourism with visitors from all over the world spending days while taking complete measures to address various concerns including gambling addiction,” the Prime Minister said in a government meeting that was attended by related officials.

If the Japanese parliament passes the bill, casinos will begin operating in the country in the mid-2020s. This might happen much earlier in some places – Osaka’s governor Ichiro Matsui, for instance, believes that a casino resort could open in the region by 2023 if Diet approves the necessary legislation quickly enough.

What the Bill Entails

Under the bill, there will be a fixed 30 percent tax rate on any casino gross revenue generated by all the gaming resorts that will be established in the country. Also, there will be a 6,000 yen or $55 entrance fee for Japanese locals – this will only be for a 24-hour access period. Furthermore, Japanese locals will be limited to three casino visits per week and 10 casino visits per month in aggregate, a measure that is probably put in place to assist with gambling addiction. Foreigners are the luckiest bunch in this case since casino entry is free and there will be less stringent limitations if any.

The Japanese government will be introducing a government-managed license system for the casinos in an effort to alleviate some of the concerns that have been raised pertaining to the launch of a casino industry in the country. The system will require operators that wish to obtain gaming licenses to submit business plans and establish measures for preventing problem gambling. In addition to this, background checks will be carried out to ensure that the applicants do not have ties to any organized crime groups.

First Lightning Network Transaction Performed by BitMari

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Having recently crossed the 2,000 mark of active nodes with 5,801 open channels on the main network, the Lightning network is gaining maturity faster than anticipated. The network essentially adds a second layer on top of the bitcoin blockchain which in turn enables super fast and low-cost bitcoin transactions.

As it stands the payment protocol that operates on bitcoin has had its total network capacity roll over to $150,000 – this is a huge milestone for the payment protocol especially considering its age. Still, there is more in store for the technology.

BitMari, Zimbabwean pan-African blockchain-based remittance service startup recently made history by successfully performing the first ever bitcoin transaction using the Lightning Network. The game-changing Lightning Network test transaction was completed with a Nigerian bitcoin trading platform known as Tanjalo. This particular achievement is proof of greater things ahead not just for payments services in Africa but also for the entire bitcoin community since users of the network will be able to make lightning-fast bitcoin transactions at close to zero costs.

Zimbabwe has been struggling with extremely high inflation rates which makes sending money to other countries extremely difficult. This applies across the board to several other African countries where the citizens only have a few money- transfer options thus forcing them to put with the extremely high transaction fees they pay to institutional bankers.

BitMari was founded with the idea of tackling the problems that the continent’s residents face when it comes to sending money across the borders by using the resources of the blockchain technology. With the entry of the Lightning Network, this rapid advancement in cross-border payment will be easier and also happen sooner.

“International average cost of remittance is approximately 7% yet, the cost of sending money to and from Africa can be as high as 20%. 20% is $2 out of every $10. These $2 may mean very little to you and I but in some areas of Africa, it could be the cost of a daily grocery trip,” reads a message on the platform’s website.

In less than five months, the Lightning Network has grown rapidly enough to topple the dominance of the much-touted Bitcoin Cash network. Therefore, its potential as universal payment service provider offers a lot of opportunities in all parts of the globe. All that is needed is a bit of exploration.