Inside Asian Gaming

December 2009 | INSIDE ASIAN GAMING 47 Briefs Trump Entertainment Resorts is supporting a buyout plan backed by Donald Trump and bondholders, according to the Press of Atlantic City . Bondholders will now compete with billionaire Andy Beal for control of Trump’s three Atlantic City casinos: TrumpTaj Mahal, Trump Plaza and Trumpa Marina. Trump and Beal had originally teamed up to make a play for the company, the Press of Atlantic City reports. But Trump switched sides last month and joined the bondholders in return for a 10% stake once Trump Entertainment Resorts emerges from Chapter 11 bankruptcy. Congress hears case for UIGEA repeal Representative Barney Frank (D-Mass.) made his case this month to repeal the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 and introduce regulated online gambling to the US in a House Financial Services Committee hearing in Washington, D.C. “The notion that this Congress should tell millionsofadultAmericans that we know better than they what they should with their own money on their own time on their own computer seems to me to be a very grave error,” said Frank, who chairs the committee. “It is true if things are the Internet, there is the possibility that underage people can get at them,” Frank said in his opening remarks. “There are a whole range of things on the Internet that we would not like underage people to use... The notion that because some people will abuse something, you prevent everybody from doing it, is as great a threat to the liberty of the individual as any philosophy I have seen.” Frank also criticized Republican opposition to repealing the UIGEA, saying it was incompatible with conservative philosophy. “I am struck by frankly what seems to be a inconsistency on the part of some of my conservative colleagues who bemoan the nanny state, who talk about limited government, who urge the government to stay out of people’s lives, who also argue that the Internet ought to be a free of restrictions, but who then single out the Internet for restrictions on personal choices to be made by individuals,” Frank said. As expected, Rep. Spencer Bachus disagreed with Frank, and chastised the committee chairman for delaying the implementation of the UIGEA. “These regulations should have been finalized and implemented two years ago,” said the Republican from Alabama. “It’s time to stop delaying the will of the great majority of this Congress and the American people. Quit the foot dragging and enforce this law.” Bachus also took a new tack in his arguments and attacked the integrity of online gambling itself through a letter fromShawn Henry, the assistant director of the FBI’s cyber division. “Technology exists to manipulate online poker games,” wrote Henry. “Technically, the online poker vendors could detect this activity and put in place safeguards to discourage cheating, although it is unclear what the incentive would be for the vendor.” In a“rapid response”memo posted after the testimony, the Poker Player’s Alliance noted the fallacy in Henry’s argument. “The largest poker sites all use software to detect collusion,” the PPA said in its response.“If a site is subjected to allegation that players are cheating, few players will play on that site.” “The letter misconstrues much about the current state of online poker, but it does so in a way that clearly makes the case for why federal oversight is necessary,” added PPA Executive Director John Pappas. WiredSaftey, a non profit organization dedicated to improving digital safety and privacy, echoed Pappas’ thoughts and said regulation provides the best opportunity to protect consumers. “The status quo offers no meaningful assurances that consumers will be protected,” WiredSafety Executive Director Parry Aftab said in testimony before the committee. “[T]here are a number of technologies routinely used in other industries that were easily adaptable to online gambling sites. They are real, proven and in use today. They are also improving by the minute.” A markup session for H.R. 2267, which would repeal the UIGEA, has not been scheduled. Binion’s to close hotel tower The iconic Binion’s Gambling Hall & Hotel is closing its 365 hotel rooms indefinitely and will cut nearly 100 of the property’s 800 jobs. Spokeswoman Lisa Robinson blamed the decision to shut down the rooms from December 14th on the economic downturn. “With the plummeting room rates in Las Vegas, we just weren’t able to keep it competitive,” she said. Binion’s rooms rates range from US$23 per night on weeknights to US$54 per night on the weekend until the hotel closes. Average daily room rates declined 24.7% in Las Vegas the first nine months of the year, with hotel occupancy slipping 5.6%, according to the latest numbers from the Las Vegas Convention and Visitors Authority. Barney Frank