Poker’s Black Friday – Remind you of something?

So iGaming has had its Black Friday. About time I say. The bottom line is, this should have happened four and a half years ago. Pokerstars, Full Tilt and Absolute Poker are but a few of the operations flaunting the UIGEA regulation, continually angering the US federal authorities. It seems, finally, that the FBI have finally found the backbone on the wet kipper these poker operations have been slapping around their faces for such a long time now.

The fact remains that outlawing online gambling is, on the whole, an unpopular decision amongst US voters. Sure, there is certainly a large school of thought against gambling and its voice is significantly more powerful than those wanting to throw their money into online poker and casino betting, but it is certainly smaller in number.

Playing or offering online poker and, more widely, online gambling is not a crime in my eyes, or in the eyes of the vast majority. For some, it is a problem and that needs to be handled with respect, and perhaps Pokerstars, Full Tilt and Absolute Poker have been lacking that in abundance over the past four and a half years. Before I set sail properly on the analogy I wish to make, I do not wish to imply that the actions of Messrs Scheinberg, Bitar, Burtnick, Tom and Beckley are akin to those of a mob. They are simply businessmen who have been successfully finding loopholes in regulation to provide entertainment to people who are crying out for it – notwithstanding the rewards they have each individually accrued as a result.

On with this analogy. The following ditty was recounted by Edward, Prince of Wales to his father, King George V, in 1919 and refers to Americans popping over the border to Canada during the prohibition era:

“Four and twenty Yankees, feeling very dry,
Went across the border to get a drink of rye.
When the rye was opened, the Yanks began to sing,
“God bless America, but God save the King!”

Pretty much sums up how things have been for American gamblers these past four years, though I doubt Prince Charles or his mother would risk laying claim to Full Tilt’s Irish headquarters and may even get a few frowns from the Isle of Man.

The late 1920s saw the era of alcoholic prohibition in the United States become more heavily enforced. The more it was enforced, the harder the criminal underworld rebelled against it to turn an even greater profit. The public popularity behind their work to keep speakeasies open was huge and contempt for the ban on alcohol grew. Eventually, President Roosevelt caved in to popular opinion, in a time where financial depression was rife, and repealed the Volstead Act during his First Hundred Days in tandem with his New Deal reforms.

Roosevelt’s New Deal for the American people quite simply would not have worked had he not repealed prohibition. It gained him crucial support in the cities and allowed him leeway on increasing taxes to aid the economic recovery. (A message for Mr Obama as election time looms, I wonder…). By this point, the prohibitionist movement had all but died out and its efforts to rid the nation of the ills of alcohol had been deemed a failure. That said, a legacy of the movement’s efforts, wanted or unwanted, was put in place.

One part of this legacy was the need alcohol marketeers had to attract new clients. One notable group of new drinkers were women. Those who were not in support of prohibition could drink in the new semi-public environment of speakeasies. This was a result of the masculinity of drinking being reduced as a result of the saloon dying out and the norm of women drinking in public was much more acceptable.

Heavy drinkers and alcoholics were among the most affected parties during prohibition. Those who were determined to find liquor could still do so, but those who saw their drinking habits as destructive typically had difficulty in finding the help they sought. The self-help societies had withered away along with the alcohol industry and in 1935 a new self-help group was founded: Alcoholics Anonymous.

In effect, prohibition had widened the market for alcoholic drinks, but had at the same time been responsible for the founding of one of the most successful self-help organisations the world has ever seen. Lessons to be learned here, if and when online gambling becomes regulated in the United States – there can be a happy marriage between those wanting and those not wanting gambling to be legitimised.

Once the decision to repeal prohibition had been made, Roosevelt’s government simply could not let off those who had profited from flaunting prohibition. The feds continued to pursue the likes of Al Capone and Bugs Moran until finally building a strong enough legal case to bring them down, in 1931 and 1946 respectively. Their struggle was finding those who were willing to testify against them. In 2011, they found their man to bring down those responsible for flaunting UIGEA in the shape of Daniel Tzvetkoff.

So, nearly 80 years on, have we reached a focal point in the historical acceptance of online gambling, and a point at which enough scapegoats have been made and brought to account for us all to move on with enjoying the entertainment pastime that is gambling online? I guess that is the multi-billion dollar question. I wonder if online poker might form part of an Obama-style New Deal during his forthcoming election campaign…

GameOn Affiliates at IGE and LAC

GameOn Affiliates is attending the International Gaming Expo at Earls Court from 26th-28th January 2010 and the London Affiliate Conference from 28th-31st January 2010.

We represent Purple Lounge Casino, 1LiveCasino, Ace Revenue, US Blackjack, Devilfish Poker & Casino and CAI Games, so if you’re an affiliate looking for a new casino or poker room to promote, get in touch and let’s meet up and strike a deal or two.

We are also on the hunt for new gaming clients, so if you’re setting up a new venture in the online gaming space and would like to find out more about starting up and running an affiliate program, we’d be delighted to talk to you and see if we can help you out!

Contact tom@gameon-affiliates.com to set up a meeting

announcing new partnerships

GameOn Affiliates is delighted to welcome on board four new partner affiliate programs. From October 2009, we will be managing and developing the Purple Lounge casino affiliate program and the 1LiveCasino.com program, plus recruiting affiliates to the the US-Blackjack.com and the DevilFish Poker and Casino affiliate networks.

I would like to take the opportunity to welcome these programs to GameOn Affiliates. We’re very much looking forward to taking these programs to the next level and beyond over the coming months!

More information on these programs can be found HERE

the rakeback debate

Been a while since I blogged about anything gaming industry related and about time I contributed my views to the ongoing debate on rakeback that seems to have captured the imagination of many in the affiliate world.

If you haven’t read the ‘offending’ article that sparked the saga, the views of Peter Marcus, William Hill Online’s COO, can be found here.

I’m going to stay clear of any discussion on whether, as a director of an operation recently offering rakeback, Marcus’ views are hypocritical, and focus on whether the facts he makes are accurate and can be substantiated.

What’s most interesting is the intensity that this debate has taken. There has always been significant opposition from a number of operators towards rakeback affiliates and licensees. Some may argue, rightly so. For me, the key is whether such affiliates and licensees are providing additional value to the players through other channels. If they are, then fair play to them – they’re using the tools they have to make money, whilst still providing an educational service to the player.

Now, if you take a close look at one of the most successful rakeback sites, RakeTheRake.com, the main focus is undoubtedly on achieving the best rakeback offer available. It is also evident that the poker rooms offering bespoke rake races to this affiliate are lapping up his traffic. Does he offer another service to players beyond this? Well, I’ll leave you to decide that.

Back to the bigger picture – if you’ve read my previous industry post, you’ll know that I disagree with the view that the affiliate’s role is simply to drive traffic, although Peter Marcus is 100% right to point to the need to avoid the cannibalisation of traffic. However, rakeback is not the prime proponent of this.

Operators need to look at the way they market their products. The bonus-led culture we work in has inspired rakeback, and is the main reason why companies are “stealing each other’s customers” as Marcus states. Rakeback is not the problem, backwards marketing strategies are. Poker rooms need to position themselves further apart and provide their players with something differentiable if they want to force the rakeback affiliate’s hand.