Internet Gaming ban passed committee

[monkeykeeper]

http://news.com.com/2100-1023-858458.html

Please call your State representatives, but remember we do not support internet betting, but rather we don't want the government entering our house and telling us what we can or cannot do.

side note: Stocks to short

Canbet.com -- Read annual report, 90% of business is from U.S., and with the treaty between US/Aus they have to stop taking bets from U.S. with one phone call from U.S. law enforcement.
Also note in report they are in the hole for about 35+ million.

Poker.com -- to dependent on U.S. players

[stardust]

Where did you see the information you posted about CanBet having to stop US players with one phone call from the US? I'd like to see that in writing.

I find that hard to belive, since there is nothing to stop the US from calling right now. Why is it that they haven't, given the fact that the US is trying to halt internet gaming through legal and informal means? Doesn't figure!

Where do you see they are 35 million in the hole? I read the anual report and they look like they lost 25 million for the last year ending, but have 18 million in equity.

[sicko]

here we go...


thoughts? responses?

[monkeykeeper]

shorting Canbet

One phone call=end of Canbet

Canbet is located in Australia, which has a mutual legal assistance treaty (MLAT). Canbet can take bets from the U.S. currently through a gray area in the wire act as it is not illegal for the bettor to place bets, only the operator.
But if internet gaming is made illegal and the bettors are violating the law, then Australia cannot take bets as they would be aiding in the commission of a crime.
The MLAT Treaty provides the force of law allowing U.S. law enforcement agencies to contact Australia and via the treaty stop taking bets from U.S. citizens.

Even in Canbet's Reports it states apprehension about such a law and "Accordingly Canbet is maintaining a close watch on developments in the United States, at the same time, looking to diversify it's sources of income and reduce its current exposure IN THAT MARKET".

Why Short: Canbet is deriving 90% of its handle from U.S. clients and has failed to "diversify sources of income". Can you imagine what the drop in stock price would be if a company lost 90% of its business.

I like to gamble, and actually am a client of Canbet, but I am betting against them on this as I think we might be able to take advantage of Australian Stock Market and investors not realizing the bill will pass this year.

[stardust]

monkeykeeper,

You never answered my questions, so I'll post them again:

Where did you see the information you posted about CanBet having to stop US players with one phone call from the US? A link would be helpful.

Where do you see they are 35 million in the hole? I read the anual report and they look like they lost 25 million for the last year ending, but have 18 million in equity. What page in the PDF file are you referencing?

Your argument:

1.) One call from the US stops CanBet's US customers.
2.) US is hell-bent to outlaw online wagering (we agree).
3.) No one has made the call (we agree).

Doesn't add up; why would they not make that call if this were the case?

[ShiftySheik]

short Paypal

I wouldn't be surprised if the US gov't tells Paypal to stop doing business with sportsbooks. The gov't put pressure on WU a few years ago and they obliged.