Monthly Archives: November 2016

GBO International says “Go onshore”

In recent years it has become increasingly difficult for gaming companies to manage their financial and banking operations due to many new restrictions made by banks, payment companies and financial regulators around the world.

One of the outcomes of this is that gaming companies and even gaming affiliates are changing their legal structure and operations, while taking into consideration the new restrictions and options.

In this article we will see what is happening in the industry, what are the pros and cons for an offshore legal structure vs onshore and try to offer several solutions.

In the past there were no problems or difficulties for a gaming company operating online casino/betting/skill game/sports betting, etc. to open offshore corporate bank accounts in top countries in Europe. Countries such as Cyprus, Malta, Gibraltar, etc. welcomed gaming companies whether they were an operator, affiliate or marketing. Few questions were asked and there was no problem to accept and send direct wires to players.

Former Ku De Ta boss ordered to pay HK$2m costs to continue poker debt lawsuit

A Hong Kong judge has ordered Chris Au, the former boss of the Ku De Ta nightclub in Singapore, to pay HK$2m in security costs if he wants to continue his civil case against a friend who owes a poker debt.

 You know the score. You are playing in a game, and the fish runs out of money. They don’t move out of their seat. Instead, their puppy dog eyes scan the table for any sign of kindness. And they get what they want; only it isn’t kindness. You make the loan because they are a fish. You think you will win more money. And then, you never see them again.

For many people, especially professional poker players, handing out loans is an integral part of the business. But what does happen when someone refuses to give you back what is rightfully yours? The only possible route is through the legal system, but it is fraught with danger, as a former nightclub owner from Singapore has just found out to the tune of HK$2 million ($258,000).

Sometime during 2008, Chris Au, the former boss of the Ku De Ta nightclub at the Marina Bay Sands area in Singapore, played in a regular home game with his associate Steve Yoon. Au alleges that Yoon lost HK$7.2 million ($928,000) to him, spread over 33 sessions. Au never received a cent and decided his only option was to sue him.

PH DOJ reject bribes to release Chinese online gambling staff

The Philippines top law enforcement official says the authorities were offered significant bribes to release the Chinese nationals arrested last week for illegally working in the online gambling business.

Last Friday, National Bureau of Immigration and Department of Justice officers raided the Fontana Leisure Park & Casino in the Clark Freeport Zone, arresting 1,316 Chinese nationals who were found working as call center staff for an online gambling operation.

The arrested suspects, none of whom had applied to work in the Philippines, are in the process of being deported for overstaying their welcome and violating the conditions of their tourist visas.

On Tuesday, Philippines Justice Secretary Vitaliano Aguirre II raised eyebrows when he claimed that Department of Justice officials had been offered bribes to release the arrested workers.

CTFE submits casino operator shortlist to run Baha Mar

Hong Kong-based conglomerate Chow Tai Fook Enterprises (CTFE) has submitted a formal plan to operate the unfinished $3.5b Baha Mar integrated resort in the Bahamas.

Last month, CTFE confirmed that it was in talks to buy Baha Mar from its principal creditor, the Export-Import Bank of China (EXIM). On Monday, Bahamian government representatives confirmed receiving CTFE’s formal proposal last week and said the government was in the process of reviewing it.

The Bahamas Tribune quoted Tourism Minister Obie Wilchcombe saying CTFE’s proposal included a shortlist of casino firms that CTFE is considering for the job of running the property’s gaming operations. Wilchcombe said the government was now in the process of performing due diligence on CTFE’s suggested operators.

Wilchcombe declined to offer specifics on what names CTFE had submitted, but said CTFE was “going to pretty much follow what they’ve done in other jurisdictions where they have major casino operators from veterans in the industry.” Wilchcombe said the government was “looking at all the components, we have to take a look at what they do now.”

CTFE submits casino operator shortlist to run Baha Mar

Hong Kong-based conglomerate Chow Tai Fook Enterprises (CTFE) has submitted a formal plan to operate the unfinished $3.5b Baha Mar integrated resort in the Bahamas.

Last month, CTFE confirmed that it was in talks to buy Baha Mar from its principal creditor, the Export-Import Bank of China (EXIM). On Monday, Bahamian government representatives confirmed receiving CTFE’s formal proposal last week and said the government was in the process of reviewing it.

The Bahamas Tribune quoted Tourism Minister Obie Wilchcombe saying CTFE’s proposal included a shortlist of casino firms that CTFE is considering for the job of running the property’s gaming operations. Wilchcombe said the government was now in the process of performing due diligence on CTFE’s suggested operators.

Wilchcombe declined to offer specifics on what names CTFE had submitted, but said CTFE was “going to pretty much follow what they’ve done in other jurisdictions where they have major casino operators from veterans in the industry.” Wilchcombe said the government was “looking at all the components, we have to take a look at what they do now.”

Straub sues regulators over Revel gaming license

The owner of Atlantic City’s dormant casino Revel is suing New Jersey gaming regulators, claiming he doesn’t need a gaming license to relaunch gaming operations at the white elephant.

Developer Glenn Straub, who acquired the bankrupt $2.4b Revel for a mere $82m in February 2015, sued the New Jersey Casino Control Commission (CCC) in Atlantic County Superior Court on Monday for their demand that he obtain a state gaming license if he wishes to re-open the casino at Revel, which Straub has rebranded under the moniker Ten.

Straub’s lawsuit claims that while Revel/Ten’s revival does plan to offer casino gaming, Straub won’t be serving any other function than landlord to the third-party vendor that will actually run the property. The lawsuit insists Straub will “have no involvement in the casino/hotel’s operations other than as a lessor.”

Co-opting US President-elect Donald Trump’s campaign mantra, Straub’s attorney David Stefankiewicz issued a statement saying Straub has “spent a lot of time, effort and money in trying to make Atlantic City great gain.” But instead of bending over backward to help Straub breathe new life into the shuttered Revel, Stefankiewicz complained that the CCC was “creating roadblock after roadblock.”