| View previous topic :: View next topic |
| Author |
Message |
legal
Site Admin
Joined: 18 Aug 2004
Posts: 510
|
 Posted: Thu Nov 11, 2004 12:50 pm Post subject: CryptoLogic and the effect of U.S. e-gaming sanctions |
 |
|
CryptoLogic and the effect of U.S. e-gaming prohibitions
See also Aiding and Abetting and Casino City's First Amendment Challenge at our U.S. forum.
One of the most interesting Canadian concerns in the industry is CryptoLogic Inc., an e-gaming software developer based in Toronto, Ont. Check out its slick Corporate Profile page here. With some of the country's top legal brass providing counsel, we thought this company was a good place to begin an inquiry into Canada-U.S. relations regarding Internet gambling.
Our e-mail to CryptoLogic:
From: legal@pokerpulse.com
To: investor.relations@cryptologic.com
Cc: legal@pokerpulse.com
Sent: Sunday, September 12, 2004 1:51 PM
Subject: E-gaming software and Canada's Criminal Code
Hello Cryptologic,
We were out trawling the Internet for information today about Canada's position regarding Internet gambling, which is currently illegal in Canada, we understand. We're particularly concerned with the potential threat to Canadian companies such as yours in view of the U.S. Justice Dept.'s recent initiatives regarding criminal aiding and abetting. Is Canada particularly vulnerable as a signatory to the North American Free Trade Agreement (NAFTA) or any other such treaties/agreements with the U.S.? Your board of directors features such an impressive line-up of legal experts, we were wondering if you could point us to any texts or articles that might be instructive.
Thanks very much.
We are quite fond of the e-button at your website and have pushed it not unlike kids in an elevator for the first time. Most interesting. (Click here to see CryptoLogic's space-age icon).
Legal@pokerpulse.com
http://www.pokerpulse.com/legal
Tracking Internet poker worldwide.
We'll post any replies we receive here. Please check back for updates.
Note: We were very pleased to find the article Is Internet Gaming Legal in Canada? A Look at Starnet by C. Ian Kyer and Danielle Hough of Fasken Martineau from which the following excerpt is taken:
| Quote: | The exemption in s. 207 (of Canada's Criminal Code) and the SCI restructuring suggest that certain aspects of such an operation, such as software development and perhaps advertising, can remain in Canada with some degree of legitimacy. A company, which merely develops the software for lawful offshore online gaming operations, is not likely in violation of the Code (emphasis ours). (-- at p. 12, footnotes omitted).
|
But that's just Canada. Note the concluding sentence at p. 13 as well as Jurisdiction in Cyberspace, also by C. Ian Kyer.
Last edited by legal on Mon Jan 31, 2005 5:00 pm; edited 8 times in total |
|
| Back to top |
|
 |
legal
Site Admin
Joined: 18 Aug 2004
Posts: 510
|
| Posted: Thu Nov 11, 2004 12:57 pm Post subject: |
|
|
Background on U.S. initiatives against aiding and abetting offshore casinos
See articles and links listed at our U.S. forum and U.S. steps up fight against gambling on the Internet by Matt Richtel May 31/04 in the New York Times , reprinted in the International Herald Tribune available in a Google search here:
| Quote: | U.S. law enforcement officials routinely seize money that they suspect is connected to activities like money laundering, terrorism or drug running. But in early April, federal marshals seized $3.2 million from Discovery Communications, the television and media company, in an aggressive effort to crack down on a new target: Internet gambling. The money initially belonged to Tropical Paradise, a Costa Rica-based Internet casino operation that in October paid Discovery for television spots to advertise an online poker room, ParadisePoker.com.
According to court documents, the government seized the funds and told Discovery, which is based in Silver Spring, Maryland, that it could be party to an illegal activity by broadcasting such advertisements.
Federal prosecutors contend that online gambling sites are illegal, but the offshore casinos fall outside their jurisdiction. So for nearly a year, the government has been trying to curb the sites' activities by investigating and pressuring American companies that provide services to offshore gambling sites on the theory that they are "aiding and abetting" those operations.
The effort had largely involved seeking information from American companies, including major broadcasters, Web portals and industry consultants. But the seizure of funds markedly escalated the government's attack. The move has raised strong criticism from constitutional experts, media industry executives and people involved with offshore casinos. They say the government is relying on an untested legal theory in taking action against American companies and employing tactics more typically used against organized crime. "This is not drug money or terrorist money," said Rodney Smolla, dean of the University of Richmond School of Law. "The fact it is being treated as such shows a crusader's zeal against offshore gambling."
The possible message being sent, legal experts said, is that any American company that does business with an offshore casino, including software makers and consultants, could be in danger of having proceeds from that business seized. (emphasis ours).
"This is a strategy of intimidating anybody who is in the chain of commerce," said Lawrence Walters (see www.GameAttorneys.com here), an attorney who works with offshore Internet casinos, as well as software companies that do business with the ccasinos. The Justice Department declined to comment on the case or other investigations in this area.
Tens of millions of Americans place bets over the Internet, wagering on sporting events and on casino games like virtual blackjack, roulette and poker. But the casinos are located outside the United States, typically in Costa Rica or the Caribbean, or in Britain. The operations are licensed and legal in those locations.
The legality of online betting is a complicated matter in the United States. The government asserts that the Federal Interstate Wire Act of 1961 prohibits all Internet casinos, but courts have been divided on the matter, legal scholars said. Individual states also have laws that prohibit any gambling enterprises that they do not formally authorize.
The World Trade Organization in March issued a preliminary ruling that said the United States was violating free trade obligations by prohibiting online gambling operations. |
Note: For more information on the WTO ruling, see the excellent compilation of legal briefs, news stories and interview with Mr. Cohen at Free Jay Cohen! here. |
|
| Back to top |
|
|
legal
Site Admin
Joined: 18 Aug 2004
Posts: 510
|
| Posted: Thu Nov 02, 2006 12:50 pm Post subject: |
|
|
The Vancouver Sun online
U.S. ban on online gambling devastates CryptoLogic
By Peter Morton, with files from Paul Vieira, CanWest News Service; Financial Post
Oct. 3/06
| Quote: | WASHINGTON - A surprise move by Congress to ban online gambling in the United States caused a $7-billion US stock market meltdown Monday, dragging down Canadian gambling software company CryptoLogic Inc.
The Toronto-based CryptoLogic saw nearly 20 per cent of its share value wiped out in hours after Congress approved a bill that will end Internet gaming in the U.S. It closed at $19.84 down $4.76. As well, Excapsa Software Inc., a Toronto-based maker of software for gambling websites, saw its shares slide 66 per cent to 15 pence in London. Chartwell Technology Inc. of Calgary, which makes gaming software systems, lost 15 per cent of its value.
In Britain, where many Internet gambling companies trade, the top three companies announced they were pulling out of the U.S. completely after the government crackdown. "This could break their necks,'' said Leopold Salcher, an analyst at Austria's investment firm RCB.
PartyGaming Plc, operator of leading Internet poker site PartyPoker.com, and competitors Sportingbet Plc and 888 Plc said they had no choice but to leave the U.S. even though American gamblers are their largest source of revenue. |
Last edited by legal on Mon Mar 05, 2007 3:45 pm; edited 1 time in total |
|
| Back to top |
|
|
legal
Site Admin
Joined: 18 Aug 2004
Posts: 510
|
| Posted: Mon Mar 05, 2007 3:36 pm Post subject: |
|
|
cbc.ca/news
Black's lawyer quits CryptoLogic board
Sept. 18/06
| Quote: | Lawyer Edward Greenspan has resigned his seat on the board of directors of CryptoLogic Inc. because he is too busy defending his client Conrad Black, the company said Monday.
The developer of Internet gaming software said Greenspan's workload, particularly as the defence lawyer in the Hollinger International case, "no longer permits him to devote the time and attention to serve fully as a director of CryptoLogic."
Black is scheduled to go on trial in Chicago next March on racketeering and fraud charges related to his operation of the media company Hollinger International Inc. He was also recently charged with tax evasion.
Black has pleaded not guilty to those charges. |
More on Conrad Black and the long reach of U.S. wire fraud.
More on the peculiar strategy Greenspan uses to curb his client's courtroom excesses at Unusual Bets. |
|
| Back to top |
|
|
legal
Site Admin
Joined: 18 Aug 2004
Posts: 510
|
| Posted: Mon Aug 06, 2007 2:22 pm Post subject: |
|
|
| Quote: | ATE Online
Cryptologic completes $1.2m deal for Asian distributor
Aug. 6/07
| Quote: | | Cryptologic has completed a $1.2 million agreement to purchase a financial interest in 568 Network, a developer and distributor of online casual games to the Chinese market. Under terms of the agreement, Cryptologic holds the option of taking a controlling stake in 568. |
|
More about Cryptologic.
More about the Markham, Ont.-based 568 Network, Inc., which states on its home page:
| Quote: | 568 Network is a developer, publisher and distributor of interactive entertainment products and offers a portfolio of diversified entertainment content that is accessible via the Internet.
568 Network was incorporated in September 2004. The corporation office is located in Markham, the Hi-Tech capital of Ontario, Canada.
Our vision is to become a premier content provider in this explosive worldwide market, and we are concentrating our creative and technical efforts on introducing new and exciting entertainment products worldwide. |
Link to this entry using
http://pokerpulse.com/legal/viewtopic.php?p=396#396. |
|
| Back to top |
|
|
|
FAQ 
Search 
Memberlist 
Usergroups
Profile 
Log in to check your private messages 
Log in 
