Below you will find some of the most commonly asked questions that people have about starting an online Poker website or operation. There are many more facets to this business and much more knowledge and infromation that can be shared with you. To discuss your particular situation and needs, please feel free to contact Vince Van Horn at the numbers or email below.
North America:1-888-699-7888 Ext. 226 .::. Worldwide: +1-310-209-8241 Ext. 226
Recent changes in United States Law have given many the impression that setting up an online gaming operation is now illegal. This is not the case as many believe. Read the information below and also see what is HOT for new online poker rooms at the moment. You can contact us to get more information how you can legally set up an online gaming operation.
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Recent changes in United States Law have given many the impression that setting up an online gaming operation is now illegal. This is not the case as many believe. You can contact us to get more information how you can legally set up an online gaming operation.
The UIGEA - What this new law does NOT do:
• The new law (Unlawful Internet Gaming Enforcement Act) does make any type of online gambling illegal. It refers only to forms of online gambling that are already illegal due to other laws. For example, at the federal level the 1961 Wire Act makes it illegal to operate an online sports-betting business (but not to be a customer). At the state level, some states make it illegal to play at an online casino. But the new law does not make any more forms of online gambling illegal. It is quite clear about this, saying that nothing in this new law shall be construed as "altering, limiting, or expanding any Federal or State law... prohibiting, permitting or regulating gambling within the US".
• The new law does not apply to the players. The law addresses only the operators of online gambling businesses and financial institutions that transfer money into those businesses.
• The new law does not mention poker specifically. The interesting question then is whether online poker is already illegal due to other existing laws. At the federal level, the executive branch says it is illegal but has never brought a suit; the judicial branch case law says it is not, most clearly in the "In Re Mastercard International" case which held that the Wire Act applied only to sports betting and not other forms of gambling. A few states do have laws prohibiting online gambling of any type except those specifically authorized (like the state lottery).
What this new law does:
• Prohibits a business from receiving deposits for the purpose of unlawful online gambling. For example, an online sportsbook that is already breaking the Wire Act by accepting online bets, is now further prohibited from accepting deposits. Specifically, the law says: "No person engaged in the business of betting or wagering may knowingly accept... credit cards, ... electronic transfers, ... " (etc) where a person is engaged in "unlawful Internet gambling".
•Requires regulation of financial institutions.The Federal Reserve is directed to create new regulations within 270 days that will apply to financial institutions. The regulations will detail how financial institutions are to identify and block transactions from the US to unlawful online gambling businesses. Note that this does not include transactions to lawful online gambling businesses, nor does it include transcations in the other direction. Also, it specifically does not cover paper checks, due to practical difficulties in tracking them.
* Federal Reserve is directed to create new regulations within 270 days that will apply to financial institutions. The regulations will detail how financial institutions are to identify and block transactions from the US to unlawful online gambling businesses. Note that this does not include transactions to lawful online gambling businesses, nor does it include transcations in the other direction. Also, it specifically does not cover paper checks, due to practical difficulties in tracking them.
What does this mean for the players?
• Some sites have decided to leave the US market. Party Poker is the largest such site. If you live in the US, you will not be able to play at these sites any longer. All of the sites have said they intend to honor existing account balances. See below for the full list of sites that are rejecting US players.
• Other sites will stay and absorb the displaced players. Some sites will sense a business opportunity and will stay in the US market. Poker Stars and Full Tilt Poker are the largest sites to announce this is their intent.
• Old ways of depositing money may be replaced by new ones. Financial institutions will begin blocking certain types of transactions into online gambling sites, even legal ones, just to be on the safe side of the law. As the regulations are written, the sites will find legal ways for people to transfer money and will make it easy for the players.
This clip explains how the United States secretly added the the ban on Internet gambling to the Safe Port Act. Internet gambling has absolutely nothing to do with the Safe Port Act, however Congress knew that this is the only way they could get the bill passed on Internet gambling. Doyle Brunson explains his views in this clip, Doyle Brunson owns and operates a very popular Internet poker site called Doyles Room which is a US Supported Online Poker Room.
What is HOT For New Online Poker Rooms Right Now?
As discussed in the previous section, changes in US laws have prompted investigations into more innovative and creative methods to offer online poker and not be involved in the quagmire of the forces effecting online gambling.
Social Media / Advertising Driven - Never have we seen a marketing tool such as social networking. Word spreads like wildfire and fortunes can literally be set overnight. Very few gambling websites have properly integrated this phenomenal marketing concept into their platforms or gaming operations. For those that heed the promise of potential exposure through networrk marketing, the world is your oyster.
Subscription/Membership Based / Advertising Driven - A business model become increasingly popular is the offering of online poker using a membership and/or advertising driven model. This is the most popular alternative to real money play that we are seeing today. Players play in poker tournaments for points, prizes, trips and real cash prizes. This method allows the poker room operator to legally address the huge US and other poker markets and avoid many of the issues concerning depositing methods. Advertisers can be solicited to pay for exposure in the room and or provide the prizes to the players. Advertising can be placed in the poker software lobby, at the poker tables and elsewhere throughout the software client. Advertisers can even sponsor certain tournaments and have their logo on the table in that tournament. There are only about 4 major poker websites currently operating this way. There is obviously room for other websites operating in a similar fashion especially if the creation of a network is part of the business model. The window of opportunity is open for those who act first.
Flash Poker - Poker is no longer just a game, it is a whole industry. And as with any industry, comes innovation and an effort by all of the parties involved in that industry to be better and one step ahead than all the other players in the industry. Flash Poker is one of these steps taken by the best Internet casinos to stay ahead of the pack.
Log On and Play Poker
Thanks to Flash Poker technology, the game speed is fantastic. There is no waiting for the Internet casino software to download to your computer. You just log on to the flash casino and start playing poker. Flash Poker can be played anywhere in the world from a computer screen with Internet access. There is no need to download the casino and game onto the hard drive of the computer. It can be played directly from your Internet browser.
Wherever you are and whatever time of day if you fancy a quick game of Poker then Flash Poker can oblige. It is accessible from everywhere and there is no delay in the game playing. Flash Poker is fast and fun, with all the benefits of Internet casino Poker.
Amazing Flash Poker Technology
Flash poker technology is one of the wonders of the digital age. The graphics and sound effects, alongside the actual game play, are so sophisticated that you will feel like you are playing poker in a real casino. And, if you don't like the noise and hustle and bustle of the casino, there is no reason why you can't turn off the sound with Flash Poker. All of the attributes of a regular Internet casino are there in the flash casino, together with the added advantage of no downloading and instant play.
All the Benefits of an Internet Casino
Since Flash Poker works like any other Internet casino game, all of the benefits of the Internet casino are there together with others. There is a 24 hour, 7 day a week helpline which can answer any query or resolve any problem. Payment can be made by credit card or through any of the secure online payment methods such as Click2Pay and Neteller. First Web Flash Casino employs ultramodern security technology, and is duly licensed, regulated, and audited. That means you can concentrate on playing and winning your flash poker games, and not have to worry about extraneous matters like fraud or identity theft.
Flash Poker Variations
There are many different variations of Poker that are available at Internet casinos today. The most up-to-date Internet Poker games are also available as Flash Poker.
Flash Poker provides an all-around more intense but yet speedier game therefore giving you more chances to play, which translates into more chances to win. If you have allocated a certain time limit to your gaming then playing Flash Poker will give you more value for your time and the money you invest as there is no waiting around. And your computer is not weighted down with the casino that has to download onto your hard drive. The games sit in the casino website's server, not on your hard drive, so you can use your computer space for other things. Flash Poker is a wholly satisfying way to play Poker.
DP - One such alternative was to devise a method to make playing poker entirely a skill based game. This has been accomplished by creating a gaming platform for Poker based on Duplicate Bridge. Duplicate poker is a game of skill - the luck of the draw is one excuse your opponents won't have... With the luck factor taken out, playing poker is no longer gambling: The Best Player Wins! Duplicate Poker is played against people sitting at other tables, holding the same cards as you.
This unique and legal format is one of the world's fastest-growing poker options
We are able to provide you with assistance and direction in setting up these types of operations.
North America:1-888-699-7888 Ext. 226 .::. Worldwide: +1-310-209-8241 Ext. 226
The proportion of people gambling online is growing steadily as more jurisdictions, together with regulated and legalised Internet gambling opportunities are being provided, making Internet gambling more socially acceptable. Things like the social and psychological dynamics of the Internet gambling behavior and the potential link between Internet gambling are getting clear as ready information is now provided to people on all levels.
Online Poker is really in a significant growth mode right now and every online poker site is looking to secure your business and as such they have great introductory sign up offers to encourage you to select their site.
Just recently PokerStars announced their first APPT event to be held in Macau, a special administrative region of China, and the hits keep coming.
On Friday the PokerDome group announced they had partnered with the Diamond Casino in the Holiday Inn with the plan of unveiling the first permanent cash game in China. The PokerDome group has experience in running poker events, being the organizers of the Oz Poker Tour in Australia and operating five poker rooms. Diamond Casino and the PokerDome Group also plan on hosting a major international poker tournament to help kick-start the poker scene in Macau.
Macau is gaining renown as the gambling capital of the world and in the past few years it has regularly been earning more gambling revenue than Las Vegas.
China is not the only country in Asia where poker is starting to flourish. Recently PokerStars held a very successful APPT event in Manila and, according to the Cebu Daily News, a Philippine Amusement and Gaming Corp. (PAGCOR) franchisee has sought the authority of the Cebu City council to operate a poker gaming center along Salinas Drive in Barangay Lahung, Cebu City.
The Regulatory Authority of Online Games in France ARJEL, is counting it's lucky stars and it's profits from the truly successful first month as a regulated and licensed environment for online gambling. Statistics have come in from sports betting sites and poker rooms and the results are overwhelmingly positive and as expected profitable for the nations coffers. The Chairman of the Regulatory Authority of Online Games or ARJEL, Jean-Francois Vilotte, revealed that more than € 80 million in bets have been registered and more than one million accounts created from approved websites.
The ARJEL has already received 44 applications for licenses including sports betting, horse betting and poker. Twenty three licenses were issued to fifteen operators, with two or three licenses acquired by some online gambling operations.
ARJEL's purpose is to issue operating licenses to internet businesses for gambling, to control the framework of the system and to control those operators that have not been sanctioned by the French Authority of Online Games.
To say the liberalization of France' s online gambling sector has been a success is an understatement with these figures released by the Authority the government is obviously very happy with the results.The new system established is effective and working fine with a confident Chairman who hopes to "bring within the law beyond what was wagered in one year in the only officially authorized website under the old system."
La Française des Jeux the monopoly firm that was the only authorized company offering online sports betting to the French public has been eclipsed in one month by the new regime. La Française des Jeux registered a turnover of only € 43 million during 2009.
Players are now using the new system and are become integrated into it's rules and taxation system. The government of France will now be able to reap the financial benefits of a safe and fair system for all French online players.
In an interview to eGaming Review, Richardt Funch, Ladbrokes Nordic country manager for Denmark, outlined the likely timeline for the regulation of online gambling in Denmark to fall in place. He also elaborated on certain key aspects of the Danish proposal.
As announced the gambling bill regulating online gambling is scheduled to be issued on January 1, 2011. However it is unlikely that this will happen as planned. As of now Denmark has referred the proposed bill to the European Commission for their approval. There is a standstill period involved during which the Danish government cannot take any steps to implement the regulatory framework. This will expire only on October 11. Then the government has to go through the process of issuing licenses. So far some of the requirements that the applicants will have to meet are available. But the complete and comprehensive details are awaited. Once the application process is opened it is expected that anywhere between 20 and 30 online gaming operators will immediately apply. For the last 50 years the Denmark government has had to deal only with one operator and that too an operator it owned. Hence carrying out due diligence on so many applications, and that too for the first time, will be an onerous task. Hence according to Funch it would be closer to April 2011 before the Danish online gaming regulatory mechanism is on stream.
The regulatory mechanism in Denmark, as per the present draft, will allow operators to offer two forms of gambling services for which licenses will be issues. One license will be for sports betting both online and offline. The other will be for online casino and poker. The online casino games permitted will be blackjack, roulette, slots, backgammon, whist and bridge. The state will charge a flat tax rate of 20% on gross win across all products. In addition the state will charge an application fee of €36,000 per license and an annual license fee in the range of €7,000 to €200,000, based on gross win. Those operators applying for licenses under both categories will have to pay an application fee of €51,000.
In the current proposal, lottery, bingo, scratch cards, keno and horse racing will not be open to private gambling operators but will be retained by the Danish monopoly. Of these the most contentious product is horse racing. The government has justified this on the grounds of protecting the profits of the local horse tracks. Funch has indicated that this provision is likely to be challenged by operators because horse racing bets are an important component of their business. However this will happen only much later after the regulatory mechanism has been established. The operators do not want to risk losing what they are being given.
Imagine, if you can, Malta voting not to join the EU (a Switzerland in the Med) while at the same time trying to attract multi-national remote gaming companies to host their servers and offer bets to foreigners. This would have been very difficult but, since accession, our EU membership provides a bedrock protection against barriers to trade. Online gaming in Malta has blossomed and is its pride and the envy of others. Just consider that in less than five years it attracted over 250 companies. The protection that the EU Treaty guarantees its member states to allow freedom of establishment and freedom of provision of services would not be available for tiny Malta outside the EU, and of course the attractiveness of its well-regulated online gaming regime would be blunted.
Malta has licensed operators who hail from all corners of the world, providing first class regulation and fair play efficiently monitored by the Lotteries and Gaming Authority. This silent revolution has generated a good proportion of our recent 3.9 per cent GDP increase from a negative last year. This is commendable. It provides well-paid jobs to over 2,500 people together with the economic multiplier effect of fees generated to lawyers, accountants and IT engineers and acts as the backbone support for the burgeoning ICT sector through extensive use of bandwidth. But the going was not easy. Starting with our neighbour, Italy has been blocking non-licensed betting sites from offering bets to their citizens unless an Italian licence is granted. Such licences were jealously guarded by the Italian State monopoly and not readily available. In a famous ECJ decision, namely that of Gambelli, it was ruled that Stanley Leisure, a UK licensed online betting provider, was not acting illegally when it offered bets to Gambelli (representing a group of Italian bettors). The same can be said for state monopolies that resisted entrance to their markets in France, the Scandinavian countries, Austria, Germany and The Netherlands. As a general comment, it is only a minority of European countries that endorsed in a comprehensive manner their gaming market. Such countries include Malta, Britain, France, Italy and Ireland. By comparison, others like Finland and Denmark have regulated only parts of the market. Typically, we see that Estonia has started to issue licences and will open the market completely next year. Switzerland is considering plans to open the online casino market. Typically, Greece only allows gambling in a casino environment. But there are a number of countries that remain steadfast in their opposition to foreign competition and would rather protect their own revenue from jealously guarded state monopolies. These include Sweden, Norway, The Netherlands, Poland, Austria and Luxembourg, which still protect state-run monopolies, even if some of them, such as Germany, have started to question the validity of its all-state treaty and only just recently lost a case at ECJ level, which confirmed that the ban is illegal. Sweden holds a monopoly on all forms of gambling; Norway has signed a new ban on the processing of unauthorised online gaming payments into law; in The Netherlands no licences are issued for online poker, casinos or bingo, although online gambling is legal, and Poland is facing tough consequences following the introduction of a controversial online gaming ban.
There are other jurisdictions in Europe facing challenges concerning gaming exclusion, such as Hungary where players are irritated due to the incredible high taxes on poker. Spain has a progressive attitude, but no uniform regulation. In the UK, one might soon need a licence from the government to advertise remote gaming, otherwise it could be a criminal offence. Belgium has tightened its measures again and now it is nearly impossible to get a licence as a new operator. A substantial number of the above-mentioned European countries are involved in infringement procedures with the European Commission due to their not being compliant with EU law regulations.
Thus we meet with the latest bastion of resistance to foreign competition, which is Germany. The German Interstate Treaty (Glücksspielvertrag), which was signed two years ago and which prohibits any organisation or brokering of public games of chance on the Internet, has come more and more under fire in recent days (not least because of Europe’s current worst case of football match fixing). In addition, 16 lander (states) have a regional monopoly for the organisation of sports betting and lotteries, while the organisation of betting on horse races and the operation of slot machines and casinos is liberalised and entrusted to approved private operators.
Since its implementation on 1 January 2008, the law has been the trigger for several cases, like C-316/07 Markus Stone, which ended up in front of the ECJ and was therefore a supervision object of the European Commission due to the fact that the prohibition was neither in compliance with the freedom of establishment (Article 43) nor with the free movement of services (Article 49). Further-more, such an interstate treaty not only challenges the suitability and necessity of the general prohibition but also combats significant technical instruments that hinder local players from using online services. Critics have always questioned how effective this is, due to the decentralised structure of the Internet, which makes it easy to circumvent blocking measures. Furthermore, most agree on the technical inability of each gaming operator to identify the precise location of the user in order to be able to enforce the treaty.
It is not surprising that in the Carmen Media case, the ECJ ruling against gaming monopolies in Germany has been described as a “breakthrough” judgment. It is also directly a “major step forward for Malta” for German-owned betting outfits licensed in Malta. ECJ ruled that the German state monopoly on most forms of gambling was “unjustifiable” and had to end at once.
In brief, the ECJ judgement in the Carmen Media case, as represented by the Hambach & Hambach law firm, was a landmark decision for the liberalisation of trade in the single market. It concerned Carmen Media being refused a betting licence in Germany. The applicant is a global gaming and entertainment group that was incorporated in Gibraltar in 2002.
The ECJ stated that the German authorities could not act arbitrarily when deciding on the granting of a licence to Carmen Media, and that the issue of such licence must be based on objective, non-discriminating and pre-established criteria. The chief judge expressed her view of the legal situation that a state gambling monopoly could only be justified with the objective of combating gambling addiction if all legal regulations and actual measures taken by a member state in the entire gambling market, rather than merely the provisions on which the monopoly on sports betting and lotteries is based, are made subject to examination as to whether restrictions on games are systematic and consistent. Another important ruling concerns Austria where the ECJ found that “the obligation on people holding concessions to operate gaming establishments to have their seat in Austria constitutes a restriction on freedom of establishment”. This is another blow to monopolists and paves the way to an orderly opening of foreign licensees to locate their seat in the country. France’s Parliament has passed a bill to end state monopoly on online gambling and allow the privately owned websites to offer bets on football, poker and horse racing. According to a Reuters’ report, the Bill was passed by a parliamentary majority of 299 votes to 223 on 6 April. The Draft Bill came into force in the beginning of June. So far, 11 companies have been licensed and registered by the French government to conduct online betting on sports and horse races, as well as poker.
Three months since new French gambling laws were introduced, the number of applicants wanting to join keeps growing. Last month, the country’s gambling regulatory body Autorité de Régulation des Jeux En Ligne (ARJEL) issued another five licences to provide online poker sites in France, two for horseracing betting, and two more for those supplying sport books. The total number of approved licensees for online gambling in France now stands at over 27.
According to Manchester-based consultancy H2 Gaming Capital, with the new legislation, the French online gambling revenue could reach €1.25 billion by 2012. This is confirmed by Awedacity Ltd, which goes a step further and forecast €1.4 billion by 2011.
Regrettably, the new Draft Bill did not scale down tax to a moderate level comparable to that charged in other jurisdictions. The state plans to tax sports and horse betting up to 7.5 per cent and up to two per cent on online poker.
To conclude, monopolies are effectively barriers to trade. Ideally, they should be moderate in size and be genuinely intended to channel gaming into a regulated and controlled system, rather than striving to maximise profits to swell state coffers.
Sweden Backs Online Gambling
In Sweden the government thinks far differently about online gaming than the United States Government who does not want their citizens visiting online gaming sites and has gone to some lengths to prevent online gaming.
Swedish Officials not only have a website for online gambling known as Svenska Spel, but they have recently told a Swedish radio station they expect a rise in online poker players visiting their website this year. They anticipate a rise in Internet gambling at their online site to go up at least forty percent during the last part of 2007. So far this year the Svenska Spel websites have seen an increase of visitors at a rate of about thirty percent according to reports from the online gambling company of ATG.
This rise in online Swedish citizens gambling provided by their government not only gives them the excitement and relaxation they desire, but also at the same time their government who provides this gaming site and also profits along with gamers at their websites appears to be content with this situation. This is one government's way of dealing with what has become a large Internet business that attracts a large amount of adult Internet visitors per day.
A new year is here and like always we look back to what happened during the last one, trying to forget the bad things and move forward with new thoughts and expectations, hoping for a better future.
We are all here about poker and it's what we live for and sometimes die for. Is this how it looks in Bulgaria? Well, poker is still young in our country and like everything is in its early days and needs time to grow. Not that we haven't been playing poker for years - it's just a long process that involves a lot of learning, work and sleepless nights.
All in all the Bulgarian poker community is growing at a very fast pace and we already have successful players taking part in big events
Online poker is much more popular so far, but casinos offer more and more live events including Omaha and Stud but fields are small. There is high buy-in tournaments in the major cities and the 2nd edition of Bulgarian Poker Open just concluded back in November which was held at Astera Casino located at our Golden Sands seaside resort.
The Italian Gambling Market - A Forerunner in the Liberalisation of European Gambling Markets
After the decision of the European Court of Justice in the Placanica case and the recent tender that allowed online and land-based gambling operators to enter the Italian market, all eyes are now turning to Italy and its role in the liberalisation of European gambling markets.
Italy, the centre of attention of the European gambling market Next to Spain and selected Asian markets, Italy is frequently mentioned as a particularly attractive jurisdiction for international expansion. Accordingly, more than 80% of the international gambling operators surveyed believe that the Italian market will be of major relevance for their future business. The following are a few reasons why Italy is
attractive for operators:
1. Unlike other EU nations, Italy is working toward a liberalisation of the gambling market, and particularly the betting sector as well as interactive gambling.
2. Another phase of liberalisation is expected in the near future. Two-thirds of the experts surveyed expect the next phase to go even further than the steps planned for 2007.
3. Growing relevance of foreign operators. A large majority of the experts believe that by 2010 international operators, such as Ladbrokes and Intralot, will capture a relevant share of the Italian gambling market.
4. Market growth to 61 billion by 2010. Overall, Italy’s gambling market is expected to grow to 61 billion (turnover) by 2010 (+64%).
5. Italy's lottery market is one of the largest in the world and can boast impressive per-capita sales.
South Africa Legalize Internet Gambling.
Great news for all online gambling lovers in South Africa. South African parliament recently approved online gambling bill and ensures strict rules and regulations for all online gambling firms and players. President of South Africa is yet to sign the bill for to law to come into effect.
The new bill ensures that every player has to file an affidavit to confirm his or her age before gambling. These strict measures are taken in order to safeguard minors and others from bad side of online gambling.
The RSA government further added that they will keep a close eye specifically on taxation, advertising, players and other important factors.
Ireland Continues No-Tax Policy Toward Online Casinos. Even if the Finance Ministry eventually rules for a tax on online gambling, the Irish gambling taxes are so low in comparison to most of the rest of the world as to be negligible.
Ireland continues to try to establish itself as a major base for online casinos, as the government has decided to stick with its current policy of not taxing Internet gambling sites. Executives from Internet casinos within the country breathed a sigh of relief, as the new additional tax imposed on betting parlors in Ireland was not applied to them.
Irish Finance Minister Brian Lenihan said his department wanted more time to study the online gambling industry before deciding if and when to tax it. Ireland is happy to receive the jobs created by the sites using the nation as a base, and doesn't want to discourage other casinos considering Ireland as a home.
Ireland recently increased the tax paid by land-based gambling operators from one to two percent, still a tiny amount compared to many other countries. Even these businesses receive a break, not having to pay any tax on telephoned wagers.
The decision by the Irish government will probably cause other online casinos to flock to Ireland, bringing jobs and prosperity. Even if the Finance Ministry eventually rules for a tax on online gambling, the Irish gambling taxes are so low in comparison to most of the rest of the world as to be negligible.
Published on November 30, 2008 by K.C. Carmichael
JULY 28,2009 UPDATES
nline gambling is becoming a topic of legislation in not only the United States, but also abroad. Internet gambling laws and proposed regulations are under scrutiny in several countries with possible changes on the horizon.
With the global economic crisis being at the forefront of governments' lists of problems, some are turning to online gambling as one possible solution to their financial issues.
The Costa Rican government has attempted to regulate online gambling in previous years with little to no success; however in a few weeks Costa Rica will try once more to tax earned income from the online gambling industry.
The expected revenue from this taxation is estimated at $85 million.
Between the bill proposed by Barney Frank to overturn the Unlawful Internet Gambling Enforcement Act and the negotiations between the United States and the European Union online gambling is a well known issue for many in the legislative branch of the government.
Barney Frank currently has at least forty-eight co-sponsors in his fight against the UIGEA. If HR2267 is passed it has the potential to generate billions of dollars in revenue for both state and federal governments.
In addition to Frank's bill to regulate and tax online gambling, the US and EU are currently in negotiations to bring the US into compliance with EU trade agreements. With the passing of the UIGEA the US violated these trade agreements and now, before the issue is taken to the WTO the two parties are working together to come to a solution.
The Remote Gambling Association desires protection from prosecution by the United States government and is not requesting compensation for lost revenue is made.
France is also faced with online gambling issues relating back to the European Union. According to the EU, France's proposed regulations for online gambling fail to follow the standards set by the European Commission. The EC set standards include a single market be established within the EU.
Another issue that has arisen from these proposed regulations is relating to the reasoning of maintaining the integrity and preventing corruption of sports. To achieve this, the regulations are proposing all operators of sports gambling compensate French teams being bet on.
Since 2007, Spanish officials have been working towards regulating online gambling in the country. As with the United States and France, the European Commission has raised issues with Spain's online gambling practices. According to the EC, Spain is also in violation of EU trade agreements.
Spain is currently working swiftly to resolve these issues and has now included individual regions in the discussions of the legal specifics.
Even as the European Commission is negotiating allegations of violations of the EU trade agreements, Europe is divided in its stance on online gambling.
13 of the EU's 27 member states have approved online gambling. Seven of the remaining fourteen have attempted to outlaw it, and the other seven have restricted it to companies owned or operated by the state. The attempts to block internet gambling include banks facing prosecution if money is transferred to online gambling companies abroad and attempts to get ISP's to block gambling website access.
What Resources For Setting Up Poker Room Can You Help Me With?
Below is a partial list of items we can assit you with.
Custom Software Development
White Labels / Skins
7 Card Stud
3 Card Poker
32 Card Draw
Stand Alone Poker Software
Membership Based Poker operations
Marketing And Promotions
How Do I Start An Online Poker Room?
Here are some basic ways to do this:
1) Design and implement all your own SOFTWARE for online multi-player poker and E-commerce. Procure a physical location, equipment, business and banking entities and employees to operate your infrastructure. Set up your player support operation. Create deposit methods with processors. Keep in mind this may cost upwards of hundreds of thousands of dollars. Also necessary is a gaming license to run an online gaming site, which requires approvals from governments. This too, does not come inexpensively. Antigua charges $100,00 per year. Some other countries are more reasonably priced. You will now need to start your marketing efforts and procure your first players. DO NOT BE UNDER CAPITALIZED WITH THIS OPTION!
2) Purchase customized poker software from a software developer that already has developed poker software (less time and expense than creating your own). Lease or buy your servers and host them at a data center. Create your deposit methods. Provide email or dedicated live player support. THIS IS THE MOST AFFORDABLE OPTION TO SET UP YOUR OWN CUSTOM POKER ROOM. We have resources to assist you with this set up option starting from $25,000
3) Become a Master Licensee of an Internet Gambling Software Provider. This normally allows you to create licensees underneath you. This is a far less expensive option and the client receives all the software and sometimes even the equipment necessary. Deposit processing and players support can also be an included option. Costs range from USD $ 60,000 to USD $ 500,000. The average licensing fees are around USD $150,000 and still requires a royalty paid to the software developer. (this usually excludes any marketing costs).
4) Become a Sub-licensee of a Licensee or a White Label Licensee. This is the most popular turnkey option that allows you to create your own branding and logo in the website and poker software. Provided is the use a operator's gaming license, gaming software, technical support, hardware, customer service and e-commerce relationships. Costs range from USD $ 10,000 to USD $ 30,000. The sub-licensee or White Label operator must do all the marketing and receives a smaller percentage than a Master Licensee.
5) Become an Affiliate of a Licensee. This is the least expensive turnkey option. It allows you to use a licensee's gaming license, (you do not need your own) gaming software, technical support, hardware, customer service and e-commerce relationships as well. Some affiliate programs offer low payout percentages and only supply banners while others offer higher payouts and create elaborate websites for your brand and logo along with your own domain name identity. The poker software would NOT have your branding and logo, but rather a generic/plain interface that would be identical to every affiliate operator. Costs range from USD $3000 to USD $10,000. The affiliate must do all the marketing (unless included in a package) and receives a percentage to the Licensee's profits.
We can also provide you with resources to help set up offshore businesses and banking accounts. The cost averages about $2500. We can also give you suggestions for where and how to procure gaming licenses.
North America:1-888-699-7888 Ext. 226 .::. Worldwide: +1-310-209-8241 Ext. 226
Depending on whether you decide to start a White Label
or Stand Alone poker room will determine your need to
acquire a gaming license:
To operate an online poker room site legally you should
have or obtain a gambling license first. The actual gambling
license to operate online gaming site is issued by many
governments worldwide, but the most popular jurisdictions
issuing such offshore gambling licenses are from the Caribbean
and Pacific Island Governments such as Antigua and Barbuda,
Costa Rica, St Kitts, Dominica, Curacau and Vanuatu. When
selecting a gambling license jurisdiction, you should
select one with a sensible approach to taxation, and license
cost in combination with a strong licensing law and technical
Do I really need a gambling
license for my online poker site?
It is possible to set up your online gaming business
without a license, but most of the major online gaming
operations have a gaming license license. Here are three
main reasons why it is worth it to have a gambling license.
1) In a player's opinion, a gambling license implies
reliability and honest operations of the gaming company.
2) Players have more confidence playing in poker rooms
with a license.
3) In case of a settlement account, opening banks insist
on gambling license and especially while concluding agreements
for receiving payments from bank cards. In many countries
operating a gambling business without a gambling license
is illegal and it may result in termination and criminal
You can apply for a gambling license in one of the countries listed below:
Antigua and Barbuda
Antigua and Barbuda is a twin-island nation located in the Eastern Caribbean. Antigua and Barbuda was one of the first jurisdictions to license interactive gaming and wagering companies in 1994. The internet gaming companies are classified as
The licensing and regulation of online gambling services on the islands of Antigua and Barbuda is handled by the Financial Services Regulatory Commission's Division of Gaming. The FRSC Gaming Division awards two types of licensees: interactive gaming and interactive wagering.
The gaming license is for casino and poker sites and the wagering license is for sports betting sites. It's one of the offshore jurisdictions which contain the biggest number of registered online casinos.
For more information on Antigua's interactive gaming and wagering laws and regulations see the following:
The Antiguan gaming regulations are enforced by the Antiguan Directorate of Offshore Gaming (the www.antiguagaming.gov.ag
Costa Rica is the Mecca of online casinos and poker rooms because it has the best infrastructure available in the Caribbean basin - its reliable telecommunication system, its multilingual workers, and its lack of online gaming and Internet regulations. A lot of online casinos have chosen Costa Rica as registration country because of the fact that there are no direct prohibition on gambling business and no necessity to receive a special license.
There is no online gambling license in Costa Rica. A company incorporated under the laws of Costa Rica can operate an online gaming business. Companies operate under a "data processing" license.
Costa Rica is home to 200+ online gambling companies, without a legislation specifically dealing with gambling over the Internet. Legislation does exist to restrict land-based gambling, but these laws are not interpreted as extending to Internet gambling.
Kahnawake is an Indian (native American) territory in Quebec, Canada.
The Kahnawake Gaming Commission is an organization that licenses a large number of online casinos and online poker rooms. The Kahnawáke Gaming Commission was established in June 1996. The Commission is empowered to regulate and control gaming and related activities within and from the Mohawk Territory of Kahnawáke. These gaming activities are regulated in accordance with the highest principles of honesty and integrity.
The fee for the initial application is C$15,000 plus an annual license fee of C$10,000
Panama adopted regulations governing the licensing of electronic games of chance and wagering activities in late 2002. Internet gaming companies domiciled in Panama enjoy complete tax exemptions. Customs duty concessions are given for imports needed to carry on Internet gaming. As long as the income made from Internet operations are to jurisdictions outside of Panama, there is no income tax, withholding tax, sales tax or VAT taxes. Offshore companies, such as online gaming companies are not subject to foreign exchange control. There is also a new call center incentive and training program that boast numerous qualified bilingual workers.
The regulations allow master licenses to be granted that are valid for up to seven years upon payment of a license fee of US$40,000. There is also an annual license fee of US$20,000. Master license holders may grant sub-licenses, which are subject to the annual fee. Applicants must pay all investigation costs incurred in the processing of the application. Operators must comply with money-laundering regulations and notify the Financial Analysis Unit of any suspicious transactions above US$10,000. An account must be maintained to guarantee payment to winners. Until now a very few companies have applied for the license, mainly due to the huge paper work and the cost of the gambling license.
Antilles Netherlands and Curacao
Within the Netherlands Antilles, Curacao offers gambling licenses for online casinos, poker rooms and sportsbooks. Gambling licenses are available through the Department of Justice or through sub-licensing from an existing gambling license holders. Licenses from the Department of Justice last for two years.
All gaming operations in Gibraltar require licensing under the Gambling Ordinance 2005. Remote Gambling licenses, including for telephone and internet betting, are issued by the Government of Gibraltar.
Only companies with a proven track record in gaming, of reputable standing and with a realistic business plan can be granted gambling licenses. Gibraltar gaming licenses are generally difficult to obtain.
The Isle of Man specifically encourages the location of online gambling businesses: "The Isle of Man Government actively encourages the development of gambling and e-gaming business on the Isle of Man. It remains committed to delivering a stable government and strong regulatory environment, supported by a wide range of attractive Business Benefits."
The Commission requires independent testing of software to ensure games offered are not rigged and will make accurate payment of player winnings. Games may only be offered by licensed, corporate operators. All operators must also establish bond arrangements to guarantee players will be paid in the event the licensee ceased operations for any reason.
GBP35,000 per annum
GBP1000 one off administration fee which is non-refundable
for gross gaming yield not exceeding £20 million per annum 1.5%
or gross gaming yield of more than £20 million per annum, but not exceeding £40 million per annum 0.5%
for gross gaming yield exceeding £40 million per annum 0.1%
The profits of the online poker industry is enormous! The amount gambled on poker websites around the world in year 2009 was estimated to be more than $80 billion! The top online poker rooms are profiting over $1 million dollars each and every day! Around 2.5 million people play poker online regularly for real money and the number is growing by 100,000 a month.
How Online Poker Rooms Profit?
Poker rooms generate the bulk of their revenue via 5 methods:
By collecting a "rake" from each pot, usually 3% to 5% of the cash in that pot. Each online poker room determines its own rake structure.
By charging entry fee to pre-scheduled multi-table sit-and-go tournaments.
Some online poker rooms also offer casino games like black jack or side bets on poker hands where the player plays against "the house" for real money. The odds are in the house's favor in these games, thus producing a profit for the house.
By investing the money that players deposit. Since the sites do not have to pay interest on players' bankrolls, this method can be a significant source of revenue.
By charging a monthly membership fee (play-for-cash poker rooms)
If you don't know what residual income is, you don't know what you are missing! Residual income is simply profits received from something that was done in the past. Writers make residual income when their books are sold. Actors make residual income based on the sales of their movies. Inventors create a product, then make a percentage of the sale of each product indefinitely. There is nothing more financially appealing then seeing profits down the road for work you do now.
Keep several points in mind.
You are not responsible to pay the winners!
An average player can play between 40 and 70 hands per hour.
The rake at the table can vary based on number of players, the game and limits.
The rakes range from $1.00 to $3,00 per pot.
If you had just 20 of your players playing an average of one hour per day, you could be making income from over a thousand pots a day just from those players.
Multiply that by 30 days in a month or 365 days in a year and I think you will get the idea.
Here's an example which you can adjust to fit your personal goals. Assumptions. You advertise for a poker room, and generate 100 new members in your first month and because of increased exposure in month 4 you are now generating 250 players a month. Of these members, your average profit per member is $50. You average a 50% retention ratio for your new members. For your first month of sales, you will earn Five Thousand Dollars based on this example. By the time you are at the end of the fourth month, however, your profits can potentially be approximately Twenty Thousand Dollars per month.
The following chart demonstrates the potential profit for a multiplayer poker site owner.
Profit per Sale
Old Players x Retention Rates
+ New Players
0 X .50 + 100 X $50
100 X .50 + 150 X $50
200 X .50 + 200 X $50
300 X .50 + 250 X $50
This example is not intended to be a claim of earnings or prediction. No company can guarantee specific earnings as the earnings are dependent upon many factors. The targeted gambling traffic is the key to your success. The general rule of thumb is, the more money you put toward marketing of your own online poker room, the higher the revenues, the higher the net income. You can expect to keep between 75% and 100% of the gross monthly deposits depending on the poker set up that you invest in. Stand-alone poker software solutions are also available.
What Is Involved In Setting Up A New Poker Room?
Some of the items to be considered in setting up a poker room are:
Risk management software
Player support staff
Technical support staff
Physical location for staff
Where And How Do I Market My Poker Website?
We can assist you with guidance to all resources to accomplish this whether internet or print based. We can also provide discounted ad space in Card Player, All In and Bluff publications, etc.
North America:1-888-699-7888 Ext. 226 .::. Worldwide: +1-310-209-8241 Ext. 226
We have compiled a list below of the most popular poker websites and their software developers. We also have poker software developers that will license their custom software with no royalty fees to be paid. That's 100% of the profits for you. We call that a Stand Alone operation. Flash poker, membership and point based models are also available
We can also show you how to reduce start up costs by creating a skin or White Label of an existing poker website operation as well. If you want information on how to set up a complete turnkey poker operation at a reasonable cost, please contact Mr. Vincent Van Horn at:
North America:1-888-699-7888 Ext. 226 .::. Worldwide: +1-310-209-8241 Ext. 226