A Little Free Trade update

Techdirt: Antigua Seriously Pushing For WTO Approval To Distribute Free Music And Movies I know you are mostly ignoring these posts, but this one sums it up real nice and has the most up to date news about Antigua pretty much telling the US to go "f" ourselves. Online gambling will be legal in the US in under 3 years. You heard it here first.

Slots

I once (famously) said, "Turns out you can lead a granma to a slot but you can't make her bet at the window." And overall, if you search this blog for the word "slots", you'll find I've been an opponent of them. I'm not against the horse industry or the people in it. I understand the economic impact the sport has on green space and employment. It's just that I never thought slots were organic to the horse racing business, and it's tricky for a well run business to add something foreign let alone the Einsteins we have working in horse racing. And now it's pretty much fact: Slots have not helped horse racing in the way they were proposed to help, they have only allowed horse racing to jack up purses, line the pockets of the casinos & state, and push the horse fan farther out the door. Search Google News today for "Horse Racing" and the top stories seem to be all about it, all focusing on Maryland. Here & Here. Slots opponents now have a lot more ammunition to work with, and their argument is coming to fruition; that by allowing slots you open the door to much more, see West Virginia Table games and Delaware sports betting. Slots was first pitched as a saviour; to get people back in the building after losing them to simulcasting halls, but now we see it for what it really is: trickle down economics, and we all know how that turned out. I'm sick and tired of all this bullshit. The sport makes money. It's an accounting trick when they say it's not, otherwise you wouldn't have everyone and their mother bidding on the NYRA franchise and there are others out there turning a profit as well. The truth is that there are way too many hands in the pot, and the money is spread too thin. Own up to this fact you greedy bastards, fix it, cut the fat, and get your fans back in the door. There is nothing wrong with the product.

What if?

I know not a lot of people keep up with this, but it does have a lot to do with horse racing. Antigua has scored another point in its battle against the US and it's no online gambling rules. Just a little summary for those of you who are saying, "Antigua, wha?" In 2003, Antigua & Barbuda filed a case with the WTO claiming that the US, contrary to promises made in the 1990s under the GATS, was enacting measures to prevent gaming companies in Antigua & Barbuda from supplying services to US citizens. In support of [Antigua and Barbuda] case a team comprised Mark Mendell and Sir Ron Sanders (then Antigua & Barbuda’s High Commissioner to London, with responsibility for the offshore financial sector), filed and won judgment in favour of Antigua & Barbuda in 2004. With the US challenging the WTO’s ruling under the Dispute Settlement Body (DSB), legal arguments have been ongoing for over four years. The DSB, in ruling in favour of Antigua & Barbuda, found that the US was applying rules to “foreign” suppliers of gambling and betting services that were not applied in equal measure to domestic US companies. By acting in this manner the US was found to be in contradiction to its commitment under Article XIV of the GATS to Antigua & Barbuda, and was directed to bring its laws into conformity with its commitments. Specifically the WTO required the US to amend three pieces of legislation. These were the Wire Act, the Travel Act and the Illegal Gambling Business Act. In response to this ruling the US has thumbed their nose at the WTO. I'm not kidding. The current administration just said to the WTO, "go screw yourselves." The US has withdrawn the online gambling sector from the WTO. But, there are no take-backs at the WTO. The US will have to pay. And big too. The online market the US is restricting from foreign entities is something like $15 BILLION, and the US will have to pay these companies they are banning as compensation. What's the big deal? Antigua is like a little chihuahua and the US is a shark with a freakin laser beam on its head. Well not exactly. If the US doesn't abide by the WTO rules, then why would Antigua? Everything copyrighted or protected in trade is up for grabs. Now does Churchill Downs know something we don't? With the recent talk about Twinspires Poker, or whatever you want to call it, I think they see the forest from the trees. I wrote here that I thought congress was just turning off a light switch for gambling but would have to turn it back on at a certain future time (when they have all their taxes in place). And I still feel that way.

Pretty Good Deal

Independent Online Edition > Business News 3 million That's what it took to make sure horse racing remained protected from "internet gaming." I don't like the term exempted or carved out, because the connotation with those words is that horse racing is no different than online poker. And, I think there is a big difference that was laid out in the IHRA. Furthermore, horse racing is a $40 BILLION industry in the US that employs people in sections of the country where it's not so easy to find work, and it's an agribusiness. Those two things alone make it very hard to get tough with, as those two topics are close to the hearts of many in the Red States (used as a geopraphical term, political affiliation aside). What I have seen is that on line poker is a 12 Billion dollar industry world wide and half of that is in the US, so let's say it's 6 Billion dollars, and obviously growing, but again the most important number that I CAN'T find are the number of employed. If horse racing is 40 Billion and poker is 6 Billion I'd say there are still more than 7 times the employees in horse racing than at online poker. The amazing thing is that the NTRA spent .0075% of 40 billion to save it. They lined some Republican pockets (I think this is more about who has control in DC than which way the NTRA leans) and got to talk to some important people. Don't forget the IHRA (long and boring) is already in place, the 3 million they spent was just to remind people about it, I don't think anybody was breaking new ground. That's a pretty good deal and money well spent (from the people who brought you go baby go!) Finally, this bill was going to pass sooner or later anyway. There is no way that Congress is going to let off shore companies make money without Congress getting a cut. Congress is the original rake. So, they make it illegal, and then they can start fresh. Actually, you know they didn't make it illegal they just made it hard for you to fund your accounts. So, Congress just turned off the light switch. My guess they turn it back on in under 10 years with a whole new rake, possibly a hoe, and shovel thrown in.

Best article about Poker laws

Did Congress Kill Online Poker? [Fool.com: Commentary] October 3, 2006 I think we've all read pretty much everything there is to read on poker and the new laws, but the above does a great job of summing it all up. Good read. My 2 cents: Why was horseracing cut a deal? Easiest question ever! Horse racing is an industry that supports jobs and has far reaching economic effects into agriculture and getting jobs into places of our country where there aren't many choices or jobs in the first place. Whereas, making online poker illegal has no ill effect on people's jobs in that industry, because there aren't any jobs. I gotta believe you'll see it legalized eventually, but given out w/ licenses of some sort to companies already on American soil and in the business. I think it's no coincidence you saw the large bid for Harrah's Casino the same day this news hit. It's much more likely internet wagering will be legalized in some form over the next 5 years, there's just way too much money (3billion) not to. It's a shame really because I do believe w/ easier access comes more people falling into the trap of addiction. People are seeing this in Ireland and the UK where bookmaking shops are on every street corner and the rate of gambling addiction is going up. That's a problem no one wants to confront.