As a somewhat regular commenter here as well as someone who is familiar with the online gaming industry, I should have posted something about this long ago. But I have been busy and I'm not the most eloquent writer. However, there has been some big news coming out about the AZ Senate race and it needs to get some attention.
Please follow below the fold
First of all, I know online gambling as an issue is not a very noble cause. There are probably a number of people here who won't appreciate this as a Democratic issue in this year's election. The main purpose of this diary is to highlight a movement happening that can swing the Senate race in AZ. There has been alot of focus on the really competitive races in TN and VA. The
Pederson campaign has been off the radar in AZ even as the race has moved to within 5 points.
About 3 weeks ago, I made a $1000 donation to Jim Pederson because I am an online poker player who used to work in the industry. Senator Jon Kyl was the main sponsor of the recent bill that found it's way onto the back of the Port Security bill (pdf) that was signed by the President on October 13th. The bill is an attempt to outlaw funding to online gaming sites, including poker. Jon Kyl has been an online gambing opponent for years and has tried to push prohibition ahead of far more serious problems affecting our country for the last 10 years. The current bill does not make playing online poker a federal crime. It is all about funding player accounts at casinos, sportsbooks and poker rooms. In other words, it pushes the funding farther offshore and farther into the alley where it is less regulated and safe. Trying to stop people from gambling online is impossible. People want to do it and they wil find a way to do it no matter what. Even conservatives like George Will see the folly in this legislation. Imagine trying to stop people from drinking alcohol through the tubes of the Internet during prohibition!
The smart move for this industry of course, would be regulation. In fact, one of our heroes here at DKos, Rep. John Conyers, has studied this issue more than anyone and has introduced legislation to study regulation. (pdf) The US has dropped the ball on this in a huge way. The UK and many other countries are already successfully regulating and taxing online gaming.
Conventional wisdom inside and outside of the industry says that this will not change anything. It pushed some responsibility of enforcement onto a very reluctant banking industry. They also left loopholes for horse betting and lotteries. If the bill even ends up being enforced, there will be 30 new online payment systems created in the next 6 months that will make this a worthless piece of paper.
So why was it passed this year in such a hurry? The answer, in my opinion, is that this was a big fat gift to James Dobson, written by Jon Kyl and delivered by Bill Frist, in order to get the religious right's support for 2008. Frist had to get this in now before the potential bloodbath on Novemember 7th.
When I made my contribution to Jim Pederson 3 weeks ago, I received a call from one of his top campaign workers and we talked about this issue. As can be expected, we expressed that this is a tricky issue for any campaign to embrace. However, we agreed that this bill should not have been attached to the back of a port security bill in the last minute with no debate whatsoever. Most Senators didn't get the chance to read the bill before it was passed. In short, Jim Pederson was opposed to this new bill, and I agreed to do what I could to spread the word and try to help put Jon Kyl into his new career as a high-paid lobbyist. I began posting in forums and blogs inside the industry to raise money for Pederson, and we managed to raise quite a bit of interest as well as cash.
Then, today I was approached by someone I know really well inside the industry and was informed about a real groundswell against Jon Kyl. Here is the email he sent me today:
I am not sure if you realize this but if the Republicans retain control of the Senate, then John Kyl from Arizona will become the new Senate Majority Leader replacing an outgoing Bill Frist. Because of this, we are all targeting Arizona as the place that the online gambling industry should take a stand and show congress that we should be heard.
The email below go out to everyone in your database....not just Arizona residents as those living outside the state can notify friends and family for an even greater impact. I did not want to mention in the message about contributions but rather point people to that page where we are represented.
Subject: US Online Bettors Need To Be Heard!
Dear Arizona Resident & Gaming Enthusiast:
We are writing to you about a very serious matter in which you can make a major difference. Put simply, the American public has spoken and they want the freedom to place wagers online. Despite this clear movement, many US politicians are ignoring the wishes of their constituencies and have undertaken several attempts to ban Americans from wagering online. One of the key proponents of such a ban is Senator Jon Kyl of Arizona (who recently co-sponsored a Bill that was passed by Congress as part of the Port Security Bill).
We are at a critical juncture at which the online gaming industry and its customers need to unite with a single vote and a loud voice that represents their interests. We believe that this can best be demonstrated by employing the efforts of you - an Arizona voter -- against Senator Kyl, and thereby send a message to the entire Congress that we are not pleased with their efforts and actions. If you are not an Arizona voter and have friends and family members residing there, please spread the word.
We urge you to contact Senator Kyl ((602) 840-1891) or his opponent Jim Pederson (602) 262-2006 - jim@pederson2006.com and to vote against Senator Kyl in the upcoming mid-term election. Please note that this is not a partisan, anti-Republican or pro-Democrat effort. Rather, it is an effort to exercise our most basic rights as US citizens to have our voices heard and interests represented. Period.
We are listed as Poker Players Against Jon Kyl representing all forms of online gambling at:
http://www.actblue.com/...
We greatly appreciate your cooperation on this effort.
Thanks and best regards
TOGETHER, WE CAN MAKE A DIFFERENCE AND BE HEARD!
I browsed over to one of the biggest online gambling rags and saw these stories:
http://www.gambling911.com/...
Arizona Senate Race: Online Gambling community plans assault on Jon Kyl
As a co-sponsor of a bill that was signed into law two weeks ago by President Bush, Jon Kyl, the Republican Senator from Arizona, has worked hard over the years to abolish online gambling utilizing the "family values" front. The current law would look to severely cut off some forms of online gambling via credit card transactions, though the banking sector has already condemned the law, claiming it would be close to impossible for the banks to monitor online gambling transactions.
Gambling911.com has also learned from top government sources that President Bush almost didn't sign the internet gambling legislation. Bush reportedly told key members in his administration that he did not want to sign off on an "unrelated" internet gambling provision that arrived to his desk as an attachment to a much more important port security bill. While hopes were high, the President ultimately signed off on the entire package though making no mention of the measure pertaining to online gambling.
That measure was spearheaded by Senator Jon Kyl and forced through Congress on the coat tails of the port security bill (courtesy of Senate Majority Leader Bill Frist) during the final Friday late night session before Election Day recess early this month. Both Frist and Kyl have claimed that online gambling is like "crack cocaine" that gets in the way of a family's well-being, yet they ensured carve-out niches for horse racing and state lotteries, something viewed as highly suspect among the online gambling community.
Other politicians likewise expressed dismay over the attached piece of legislation that appeared without warning and could not get passed on its own. Some, like Nevada Representative Shelley Berkley, voiced outrage over the internet gambling provision's inclusion while Senate Republicans removed other measures from the "port bill" that would help bolster rail and mass transit security. Even the original sponsors of the port security bill spoke out against the internet gambling provision add-on.
In the coming days, the online gambling community is planning a massive protest against Senator Jon Kyl in the state of Arizona. Dozens of websites focusing on the sector will be publishing a message alerting Arizona voters and online gambling enthusiasts as to Senator Kyl's role in trying to abolish internet poker, sports betting an online casino games while ensuring the protection of his own state lottery.
Many of these sites, including prominent online gambling establishments that operate outside the United States, will be sending the powerful message to all of its Arizona customers. One large sports betting firm has disclosed that based on last year's numbers they had just over 5000 registered users in the city of Phoenix alone.
"The industry as a whole must take a stand to show how powerful we are and that politicians with their own self-agendas need to be held accountable for their actions," said a prominent member of the online gambling community who is one of many organizing the campaign against Jon Kyl.
It is a campaign that can work. Internet gambling has become a billion dollar industry that, contrary to popular opinion among some political foes, fuels the US economy through ad deals, sponsorship events and most notably works in conjunction with Las Vegas.
"The Vegas casinos once despised our industry. This year they lobbied heavily to prevent the passage of the internet gambling legislation. It was once believed that online casinos would negatively affect Las Vegas since gamblers could now play casino games without leaving the comfort of their homes. Quite the opposite has occurred. Online gambling has only helped to fuel interest in Vegas as the ultimate casino gaming experience. It's really no different than being able to rent movies two or three months after a film's release. That hasn't stopped the box office from realizing record breaking numbers year after year."
Over the past few weeks, Jon Kyl has watched a solid lead evaporate. Democratic challenger Jim Pederson has now closed within 6 percentage points of Kyl.
"The online gambling community will narrow that gap even further and anyone who underestimates our influence is in for quite a surprise," predicts the prominent industry representative. "Nine percent of Arizona voters said they were undecided and we believe many of these are individuals who love gambling online and will be inclined to vote against anyone looking to take away their rights."
The effort on behalf of the internet gambling sector also looks to address concerns over prohibition that stretches beyond the gaming landscape.
"We believe through 'word of mouth' those disinterested in online gambling will be turned off by Senator Kyl's attempts at prohibition."
Websites were expected to begin relaying the message later this week.
http://www.gambling911.com/...
Arizona Senate Race takes center stage in online gambling industry backlash
Online gambling community goes on a crusade against Arizona Senator Jon Kyl
He co-sponsored a law that seeks to restrict many forms of internet gambling including online poker. But before ensuring the passage of his bill during the final hours of Congressional gatherings Friday September 30, Senator Jon Kyl (R) of Arizona made sure to appease the powerful horse racing lobbyists and state lotteries by including their exemptions. This "carve out" went completely against Kyl's stance that "online gambling destroys family values". The prohibition could not pass on its own (thanks to heavy opposition from the banking sector, Las Vegas and other politicians among others) so Kyl had the legislation attached to an all important port security bill.
Shady? You be the judge. The internet gambling community has had some other choice words for Mr. Kyl that will not be repeated in this space.
Likewise, the media hasn't been easy on Senator Kyl and a handful of his colleagues. Radley Balko of TheAgitator.com put it best:
It was a dubious maneuver, which not only prevented any real floor debate over the ban, but also attached an intrusive, unnecessary, big government measure to a bill that addressed important national security concerns. This meant that any senator who held the position that what Americans do with their own money in their own homes on their own time is none of the government's business couldn't vote against the gambling ban, lest they risk being smacked about the head with the "soft on national security" cudgel.
On Thursday, a campaign was launched against Senator Jon Kyl by the billion dollar online gambling industry which could potentially reach more than a million people nationwide prior to the November 7 Elections. The fact that we are talking about a billion dollar industry should give Mr. Kyl some inkling that there are people who care about this issue.
Many online gambling sites have already committed to sending the message out to their own customer databases. One company has over 10,000 registered players in the state of Arizona alone. Each of these individuals has some interest in gambling online.
Website operators for the most part are sending the powerful message to customers throughout the world, not just limiting to the state of Arizona. The belief is that many online gamers living outside of Arizona will tell their friends and family members about Mr. Kyl.
In just under a one week period, Senator Kyl's co-sponsored law caused millions of dollars to be lost by investors in the online gambling community. Last year's biggest IPO on the London Stock Exchange, PartyGaming, pulled out of the US market and shareholders there were devastated.
So far, online gamblers themselves have not been targeted by Mr. Kyl but the industry has been warned that things may only get worse if he is re-elected. Jon Kyl is widely considered next in line to become Senate Majority Leader upon Bill Frist's retirement the end of this year.
It should be noted that the current race at press time had Kyl with only a 5 percent point lead ahead of challenger Jim Pederson.
All interested and affected parties are being asked by the online gambling community to distribute the following message to as many people as humanly possible with a keen focus on the state of Arizona:
Subject: US Online Bettors Need To Be Heard!
Dear Arizona Resident & Gaming Enthusiast:
We are writing to you about a very serious matter in which you can make a
major difference. Put simply, the American public has spoken and they want
the freedom to place wagers online. Despite this clear movement, many US
politicians are ignoring the wishes of their constituencies and have
undertaken several attempts to ban Americans from wagering online. One of
the key proponents of such a ban is Senator Jon Kyl of Arizona (who recently
co-sponsored a Bill that was passed by Congress as part of the Port Security
Bill).
We are at a critical juncture at which the online gaming industry and its
customers need to unite with a single vote and a loud voice that represents
their interests. We believe that this can best be demonstrated by employing
the efforts of you - an Arizona voter -- against Senator Kyl, and thereby
send a message to the entire Congress that we are not pleased with their
efforts and actions. If you are not an Arizona voter and have friends and
family members residing there, please spread the word.
We urge you to contact Senator Kyl ((602) 840-1891) or his opponent Jim
Pederson (602) 262-2006 - jim@pederson2006.com and to vote against Senator
Kyl in the upcoming mid-term election. Please note that this is not a
partisan, anti-Republican or pro-Democrat effort. Rather, it is an effort
to exercise our most basic rights as US citizens to have our voices heard
and interests represented. Period.
We are listed as Poker Players Against Jon Kyl representing all forms of
online gambling at:
http://www.actblue.com/...
We greatly appreciate your cooperation on this effort.
Thanks and best regards
TOGETHER, WE CAN MAKE A DIFFERENCE AND BE HEARD!
I did some digging and I found out that this is being spearheaded by pretty powerful people including some very popular pro poker players and the Poker Players Alliance. These people are extremely angry and the anti-Republican sentiment in this industry is UNBELIEVABLE. Online gamblers, lead by poker players from all over the US are being mobilized and will be voting this November. Mark my words. If Jon Kyl is defeated in Novemeber, you can thank the online gaming industry for it.