Buzz Daly: Kudos to UK Sporting Bet's Tax Campaign

27 May 2002

"No taxation without representation," was the battle cry of a young, upstart group of revolutionaries that defeated an empire just a few millennia ago.

But in the "truth is stranger than fiction" category, today representatives of that long-ago adversary are in our nation's capital, lobbying for the U.S. to implement regulation and taxation of the online gambling industry.

With typical British civility and understatement, U.K.-based Sportingbet Plc has launched a major campaign in the U.S. to raise the consciousness of our government and media regarding the issue of Internet gambling by Americans.

Right up front, let us say kudos to the folks at Sportingbet for undertaking this massive effort. They envision a three-pronged attack involving advertising, lobbying, as well as having their top executives go one-on-one with key congressmen and the media.

The ultimate goal is to convince our politicians, many of whom wrap themselves in moral platitudes and self-righteousness while filling their bellies and wallets at the public trough, that there are reasonable and preferable alternatives to Prohibition.

One senses that the only way to get a politico's attention in the Washington Beltway is to offer to hold a fund-raiser at $1,000 a ticket. Personally, we favor a campaign that would send in Rambo with a two-by-four to start knocking heads together, and impress upon our "elected representatives" that their constituents enjoy gambling. Furthermore, we don't want a self-proclaimed "God squad" of politicos that is simply a Big Brother cabal bent on abridging our rights in order to match their religious piety.

But we digress. Sportingbet's tempered approach undoubtedly is the way to go. The company has taken full page ads in leading Washington publications read by congressmen and other government officials. The ad politely but pointedly suggests that a successful model now exists which integrates betting into the social fabric of a civilized nation.

Sportingbet cites its credentials as a publicly traded company quoted on the London Stock Exchange, noting, "We are transparent and ethical in everything we do."

With a headline that asks, "Please Sir, Can I Pay Tax?" the ad points out that taxation and full regulation isn't a wild-eyed social theory. It is a fact of life, in which, "The British Government takes a healthy tax revenue from all forms of betting. Revenue that it puts to good use."

Sportingbet compares online gambling with consumption of alcohol, and suggests that Prohibition was a less-than-rousing success in stopping a thirsty public from drinking.

We hope the advertising and lobbying campaign bears fruit, and might nudge a few other offshore books to lend support. We realize this is a sticky wicket for companies with American leadership. But everyone in the industry should figure out a way to step up and contribute.

We are hopeful that Sportingbet's effort at converting the media and politicians to a more enlightened point of view will meet with dazzling success. It is spearheaded by executive deputy chairman Mark Blandford, who is uniquely qualified to handle this task.

We spoke with him recently in Toronto at an industry trade show and he was looking forward to the challenge. In fact, he advised us that because the initial part of the campaign had been so productive, his time in Washington had been extended.

Blandford's background includes being a British "wiseguy" and licensed bookmaker. After founding Sportingbet and guiding it through a period of extraordinary growth, he has now donned the mantle of industry spokesman. We believe it will be a good fit.

Of course, Sportingbet has a full team of executives who are scheduled to meet with congressional movers and shakers, and influential media commentators, to advocate strong U.S. government regulation of the gambling industry. Here is a condensation of what Blandford and Sportingbet CEO Nigel Payne will be saying during their time in Washington:

"We believe that the U.S. should follow the example of the U.K. government that has adopted a proactive approach to online betting, and secured huge revenues in the form of taxation. It has established a legitimate and well-regulated and safe environment for people to bet over the Internet. In many ways, online betting is safer than more traditional forms of gambling.

"Minors are excluded by advance screening methods and the added ability to follow an audit trail. If the U.S. government chooses to prohibit, it will not only remove the safety net of regulation, but continue to miss out on a fantastic revenue stream."

Despite all the roadblocks put up by anti-gaming zealots and hypocritical politicos, the movement in which financial risk-takers and recreational gamblers may partake of their chosen activity via the Internet continues to gather momentum.

Ideally, the campaign by Sportingbet will nudge the U.S. in the direction that respects freedom of choice by individuals.

TRADE SHOW REPORT.

After years of doing business with Canadians in the offshore gaming industry, we finally figured out why we find them so agreeable.

We recently attended the Global Interactive Gaming Summit and Expo 2002, held in Toronto. At all the restaurants we visited, we noticed that on the tables, the containers of sweetener for coffee, tea, etc., were piled high with both white and raw sugar, but only a few pink and blue packets of the fake stuff were available.

People work hard at trade shows. Cutting deals, schmoozing, walking the floor, attending seminars, networking and, of course, partying. This event, sponsored by the River City Group, gets high marks in all areas.

We attended two seminars. One covered online sportsbooks in which Sportingbet's Mark Blandford and Ladbrokes' David Briggs gave compelling reasons why betting on sports is so popular.

Each noted that his company had taken a different route to success. Sportingbet, a premier online company, has raised substantial funds through a public offering and is traded on the London Stock Exchange. It has used these funds to make major acquisitions and become a key player in the industry.

Conversely, Ladbrokes cited its position as a leading traditional betting shop, and one which has embraced organic growth.

Another seminar addressed payment problems and solutions. Overall, the feeling was less hopeful for the short term, but optimistic for the longer term.

Essentially, problems involved in transferring funds between clients and online gaming companies will continue to be troublesome. Anti-gaming attitudes by the U.S. government are not going away. Additionally, credit card companies and banks are not willing to put up with the volatility of collection due to chargebacks and other ways in which customers renege on paying.

We should point out that we were at this show courtesy of StatFox.com This young and rapidly growing sports handicapping information provider is a key contributor to our football newspaper, Players' Choice, and our website, Buzz Daly.

We've watched StatFox grow, using patience, good judgment and commitment to producing a top-of-the-line product. Company president Jeff Makinen, along with other top execs, David Bartman, Rich Lorbach and Steve Makinen, made their presence known at the Expo as well as at some of the city's leading watering holes.

Some of the other companies we met for the first time included Covers.com, a sports gaming website we have always liked and respected for its coverage of the industry.

After talking with director of business development Shawn Wells, we now understand why the company is so well regarded. Shawn's upbeat take on the future of online sports gaming reflected the insight of a professional who figures to be around for quite a while.

We noticed a number of gaming pubs were represented at this show including Gambling Online, which was launched in May 2000 and has quickly established itself as a leading publication designed to inform and entertain.

We were delighted to meet the editor, Michael Caselli, who occasionally assigns us a piece "due yesterday". But his story ideas are so good, we let him abuse us anyway.

Gambling Times Magazine was represented by Green Room Media, a leading marketing and advertising agency to the online gaming industry.

We remember when this venerable publication was the only such magazine covering gambling, long before anyone heard of the Internet. Happily, it has made the transiton to the new age of gaming and yes, we do contribute stories to GT.

Another periodical, CasinoTimes News, was also available. We noted this issue contained what is probably the definitive coverage of the Aces Gold meltdown.

Internet software provider RealTime Gaming threw a terrific party at the Bistro Restaurant Club Room that overlooks the Toronto SkyDome. The Blue Jays were playing and it was a great way to see a ball game.

The last day of the show, River City Group hosted its own party and it seemed as if the entire attendance at the Expo showed up. As a veteran free loader, we must give a tip of the Sportsbook Scene cap to River City for putting on a fun event.

Other than a few XXX-rated escapades with the guys from StatFox and BoDog, which are best left to the imagination, we came away from the show feeling that this offshore/online gaming industry has a few more surprises in store for bettors.

NEW BASEBALL OUT.

Recently we have been getting killed in baseball. We have been unable to find either a live dog or a worthwhile favorite. But of course, we're undeterred.

Now we have another out for baseball. Parlaycard.com has added the full major league schedule to its betting menu. Two-team to eight-team parlays are available, using sides and totals.

A dime line is offered, breaking off to 15 cents at 1.45. Joe Gallagher, a consultant to Parlaycard.com, said the company waited to offer baseball until it had its software package perfectly in place.

"We didn't want to h4ave customers suffer through any glitches, so we lost the first seven weeks of the season. But now we're up and running."

By football season, the site will offer straight bets as well as parlays, teasers and variations of those bets.

Betting limits will be $1,000 on a straight bet, said Gallagher. "We're looking to service the average player who simply wants to bet a game, get good payouts and fair vig."

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	Buzz Daly: Kudos to UK Sporting Bet's Tax Campaign 27 May 2002 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> "No taxation without representation," was the battle cry of a young, upstart group of revolutionaries that defeated an empire just a few millennia ago. But in the "truth is stranger than fiction" category, today representatives of that long-ago adversary are in our nation's capital, lobbying for the U.S. to implement regulation and taxation of the online gambling industry. With typical British civility and understatement, U.K.-based Sportingbet Plc has launched a major campaign in the U.S. to raise the consciousness of our government and media regarding the issue of Internet gambling by Americans. Right up front, let us say kudos to the folks at Sportingbet for undertaking this massive effort. They envision a three-pronged attack involving advertising, lobbying, as well as having their top executives go one-on-one with key congressmen and the media. The ultimate goal is to convince our politicians, many of whom wrap themselves in moral platitudes and self-righteousness while filling their bellies and wallets at the public trough, that there are reasonable and preferable alternatives to Prohibition. One senses that the only way to get a politico's attention in the Washington Beltway is to offer to hold a fund-raiser at $1,000 a ticket. Personally, we favor a campaign that would send in Rambo with a two-by-four to start knocking heads together, and impress upon our "elected representatives" that their constituents enjoy gambling. Furthermore, we don't want a self-proclaimed "God squad" of politicos that is simply a Big Brother cabal bent on abridging our rights in order to match their religious piety. But we digress. Sportingbet's tempered approach undoubtedly is the way to go. The company has taken full page ads in leading Washington publications read by congressmen and other government officials. The ad politely but pointedly suggests that a successful model now exists which integrates betting into the social fabric of a civilized nation. Sportingbet cites its credentials as a publicly traded company quoted on the London Stock Exchange, noting, "We are transparent and ethical in everything we do." With a headline that asks, "Please Sir, Can I Pay Tax?" the ad points out that taxation and full regulation isn't a wild-eyed social theory. It is a fact of life, in which, "The British Government takes a healthy tax revenue from all forms of betting. Revenue that it puts to good use." Sportingbet compares online gambling with consumption of alcohol, and suggests that Prohibition was a less-than-rousing success in stopping a thirsty public from drinking. We hope the advertising and lobbying campaign bears fruit, and might nudge a few other offshore books to lend support. We realize this is a sticky wicket for companies with American leadership. But everyone in the industry should figure out a way to step up and contribute. We are hopeful that Sportingbet's effort at converting the media and politicians to a more enlightened point of view will meet with dazzling success. It is spearheaded by executive deputy chairman Mark Blandford, who is uniquely qualified to handle this task. We spoke with him recently in Toronto at an industry trade show and he was looking forward to the challenge. In fact, he advised us that because the initial part of the campaign had been so productive, his time in Washington had been extended. Blandford's background includes being a British "wiseguy" and licensed bookmaker. After founding Sportingbet and guiding it through a period of extraordinary growth, he has now donned the mantle of industry spokesman. We believe it will be a good fit. Of course, Sportingbet has a full team of executives who are scheduled to meet with congressional movers and shakers, and influential media commentators, to advocate strong U.S. government regulation of the gambling industry. Here is a condensation of what Blandford and Sportingbet CEO Nigel Payne will be saying during their time in Washington: "We believe that the U.S. should follow the example of the U.K. government that has adopted a proactive approach to online betting, and secured huge revenues in the form of taxation. It has established a legitimate and well-regulated and safe environment for people to bet over the Internet. In many ways, online betting is safer than more traditional forms of gambling. "Minors are excluded by advance screening methods and the added ability to follow an audit trail. If the U.S. government chooses to prohibit, it will not only remove the safety net of regulation, but continue to miss out on a fantastic revenue stream." Despite all the roadblocks put up by anti-gaming zealots and hypocritical politicos, the movement in which financial risk-takers and recreational gamblers may partake of their chosen activity via the Internet continues to gather momentum. Ideally, the campaign by Sportingbet will nudge the U.S. in the direction that respects freedom of choice by individuals. TRADE SHOW REPORT. After years of doing business with Canadians in the offshore gaming industry, we finally figured out why we find them so agreeable. We recently attended the Global Interactive Gaming Summit and Expo 2002, held in Toronto. At all the restaurants we visited, we noticed that on the tables, the containers of sweetener for coffee, tea, etc., were piled high with both white and raw sugar, but only a few pink and blue packets of the fake stuff were available. People work hard at trade shows. Cutting deals, schmoozing, walking the floor, attending seminars, networking and, of course, partying. This event, sponsored by the River City Group, gets high marks in all areas. We attended two seminars. One covered online sportsbooks in which Sportingbet's Mark Blandford and Ladbrokes' David Briggs gave compelling reasons why betting on sports is so popular. Each noted that his company had taken a different route to success. Sportingbet, a premier online company, has raised substantial funds through a public offering and is traded on the London Stock Exchange. It has used these funds to make major acquisitions and become a key player in the industry. Conversely, Ladbrokes cited its position as a leading traditional betting shop, and one which has embraced organic growth. Another seminar addressed payment problems and solutions. Overall, the feeling was less hopeful for the short term, but optimistic for the longer term. Essentially, problems involved in transferring funds between clients and online gaming companies will continue to be troublesome. Anti-gaming attitudes by the U.S. government are not going away. Additionally, credit card companies and banks are not willing to put up with the volatility of collection due to chargebacks and other ways in which customers renege on paying. We should point out that we were at this show courtesy of StatFox.com This young and rapidly growing sports handicapping information provider is a key contributor to our football newspaper, Players' Choice, and our website, Buzz Daly. We've watched StatFox grow, using patience, good judgment and commitment to producing a top-of-the-line product. Company president Jeff Makinen, along with other top execs, David Bartman, Rich Lorbach and Steve Makinen, made their presence known at the Expo as well as at some of the city's leading watering holes. Some of the other companies we met for the first time included Covers.com, a sports gaming website we have always liked and respected for its coverage of the industry. After talking with director of business development Shawn Wells, we now understand why the company is so well regarded. Shawn's upbeat take on the future of online sports gaming reflected the insight of a professional who figures to be around for quite a while. We noticed a number of gaming pubs were represented at this show including Gambling Online, which was launched in May 2000 and has quickly established itself as a leading publication designed to inform and entertain. We were delighted to meet the editor, Michael Caselli, who occasionally assigns us a piece "due yesterday". But his story ideas are so good, we let him abuse us anyway. Gambling Times Magazine was represented by Green Room Media, a leading marketing and advertising agency to the online gaming industry. We remember when this venerable publication was the only such magazine covering gambling, long before anyone heard of the Internet. Happily, it has made the transiton to the new age of gaming and yes, we do contribute stories to GT. Another periodical, CasinoTimes News, was also available. We noted this issue contained what is probably the definitive coverage of the Aces Gold meltdown. Internet software provider RealTime Gaming threw a terrific party at the Bistro Restaurant Club Room that overlooks the Toronto SkyDome. The Blue Jays were playing and it was a great way to see a ball game. The last day of the show, River City Group hosted its own party and it seemed as if the entire attendance at the Expo showed up. As a veteran free loader, we must give a tip of the Sportsbook Scene cap to River City for putting on a fun event. Other than a few XXX-rated escapades with the guys from StatFox and BoDog, which are best left to the imagination, we came away from the show feeling that this offshore/online gaming industry has a few more surprises in store for bettors. NEW BASEBALL OUT. Recently we have been getting killed in baseball. We have been unable to find either a live dog or a worthwhile favorite. But of course, we're undeterred. Now we have another out for baseball. Parlaycard.com has added the full major league schedule to its betting menu. Two-team to eight-team parlays are available, using sides and totals. A dime line is offered, breaking off to 15 cents at 1.45. Joe Gallagher, a consultant to Parlaycard.com, said the company waited to offer baseball until it had its software package perfectly in place. "We didn't want to h4ave customers suffer through any glitches, so we lost the first seven weeks of the season. But now we're up and running." By football season, the site will offer straight bets as well as parlays, teasers and variations of those bets. Betting limits will be $1,000 on a straight bet, said Gallagher. "We're looking to service the average player who simply wants to bet a game, get good payouts and fair vig."