Pinnacle Sports Book, the largest offshore book, has suddenly and without warning closed to U.S. customers. Withdrawals are being processed, so we can all hope that the money will be returned promptly. This will have significant and immediate effects on the offshore industry. If you have money in a second tier book, I'd get it out now until we have a better handle on how things shake out.

The mob will soon be prominent again in the sports bookmaking business, bigger than ever, shaking down people on street corners. When Congress passed the internet gambling act a few months ago (which included support from most local Congressmen and both Senators Durbin and Obama), they undid 70 years of law enforcment initiatives aimed at reducing the scope of the mob. Next time you see one of our Congresspersons or Senators, ask them how proud they are to be part of enacting the second greatest legislative act in US history (behind prohibition) to encourage organized crime.

I play at pinnacle as well. I also play at youwager.com, they are still open to US customers, but I am immediately withdrawing my remaining funds.

I also play poker online, and both sites where I play are running as usual, but for how long? I will definitely be withdrawing a substantial amount until this situation shakes out.

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way

I use BoDog right now, but I think all of us need to be concerned.

We should compile a list of sites here that are still open, and also what are other site's reaction (like BoDog) to what Pinnacle is doing - have they emailed anyone, put out a PR statement, etc ?

Prediction: We will see other books going out of business within a week. (Not just closing to US customers, but closing the doors). Pinnacle provided a LOT of liquidity to other books via scalps and middles. Books that are already on shaky ground could be out of cash soon. I wouldn't trust any money at any book right now. Most businesses in any industry would suffer greatly if they suddenly lost 10-20% of their gross revenue. For many smaller books, the revenue they got through Pinnacle was at least that much.

If the Justice Department threatened Pinny, they picked the right book to play dominos.

What do you see BoDog doing in the US ? Staying ?

On a related note, it was reported that an online gaming site was attempting the buy the country of Sealand. Sealand is a small manmade structure off the coast of england but located in neutral waters. It has been considered a sovereign for some time with a single owner and ruler. The result of a sale is that the new owner would become the head of the "country".

BD...I have no idea what any offshore book is going to do, but I'm not going to take a risk on any book. I don't know enough about Bodog specifically to comment. I will be out of the offshores for awhile until this shakes out.

1/11/07...The Day the music died.
http://youtube.com/watch?v=QHkT2YfqHE4& ... ed&search=

This is very disappointing. And I'm with you, Coast, I'll be taking an offshore break as well. Just took a trip to Vegas 6 weeks ago, and will be taking another 6 weeks from now. I guess that will have to suffice.

On a side note, I haven't kept large sums of money in my offshore account since the new law broke a while back. But, in light of today's events, for the first time in a long time I have decided to "gamble" (as opposed to "invest"). Took my remaining balance and parlayed it all on the Bulls (moneyline) and the over (191). So, come ten o'clock tonight, I'll either be cashed out, or I'll cash out. If I'm going out anyway, might as well be my way.

Why do you like the OVER tonight ? I'm fairly confident that the Bulls are going to come out tonight, and break out of this slump, but NJ is always a bit of a risk, espeically on the road.

It's been a long, long time since I was not actively engaged on a (nearly) daily basis capping college hoops. I feel like my mistress died today (not that I have ever had a mistress or would know what that feels like).

BD,

I make this total at 196, so I’ll jump on a 191 when I see it. Both teams average circa 195. The Nets are a running team, and the Bulls have the athletes to run with them. Last week’s contest was an aberration due to New Jersey not making a basket until halfway through the first quarter. I don’t see that happening again.

The Bulls are a perimeter team, so you always run the risk that they’ll be ice cold shooting and come in way under the total. But tonight, I’m taking that risk. Usually, wagering for me is very business-like. However, given the fact that I’m about to take a lengthy vacation (until my next Vegas trip), I’m going to have some fun with it and let it fly.

You know, SB, you ought to get yourself a spinnin bucket for the game tonight. hhhhhmmmmm 11 herbs and spices, extra crispy

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way

Well, I didn't get the KFC bucket, but had plenty of drinks to wash down a big losing wager.

I'd like to go out on a winning ticket at least. Have a few NFL plays that were already in place prior to today's news.

Christ, what's next? I can't bet sports, I can't smoke in bars, trans fats, etc. Pretty soon they'll be telling us about the pending ban on whacking off. Sad times indeed.

Dear Sir,

After careful consideration, Pinnacle Sports has made the decision to voluntarily exit the U.S. market. Accordingly, as of Thursday, 11 January 2007, wagers will no longer be accepted from clients within the U.S. This decision was given much thought by the Management of Pinnacle Sports and one we do not anticipate changing.

Please be assured that all funds will be returned to our clients. You may use the Cashier of your account to process your withdrawal. Our normal policies for withdrawals will apply.

Any pending wagers in your account will be honored by Pinnacle Sports. As your wagers are graded, you may use the Cashier of your account to request any balance due.

Pinnacle Sports will continue providing our services to our non-US based clients.

We sincerely appreciate your support of our site and apologize in advance for any slight delays you may encounter as we exit our US clients.


Regards,

Customer Service Department
Pinnacle Sport

this was on another site i go to quite often.

What site is this, if you don't mind me asking ?

This message is all over the place: gambling911.com, eog.com (eye on gambling), etc.

yep. That's the message that greeted me early Thursday morning when I logged into my account at Pinnacle.

I think that this little parcel is becoming very popular. A file-sharing site is apparently trying to make a move for the platform as well.
http://www.thelocal.se/6076/20070112/

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CNBC reported it at 11 am this morning as BREAKING NEWS....only about 32 hours after it happened.

I think it's actually better for gamblers to give book making back to the mob. People are less likely to lose their houses. When you have to pay Vinny at the gas station every week you are less likely to bet what you don't have. The internet is just a credit card and you try to catch up.

Don't get me wrong it hurts the responsible gamblers and I think it should be legal but it probrally protects people from them selves more when the mob runs it.

Wrong. I saw a guy pull up his customized mini van to a certain bar I know of, hand the keyes to a large fellow I know of, and walk out of the bar without ordering a drink and in a very unhappy mood.

Nobody on the net issues you a line of credit. The only money you have to lay is the money you’ve deposited in your account. It’s no more financially risky for degenerates than any other form of wagering. Also, the internet has never broken anyone’s thumbs.

You can run up all kinds of credit card debt, but you wouldn't necessarily be fearing for your life.

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Everybody can cite random examples of bad things happening with bookies. I know that. I'm just saying as a whole, Americans, are financially safer with a mob book maker. Financially I'm saying. Bodily harm of course you're at more risk. I just think it's less likely to lose big with your own book. For most people

That would be incorrect. Used to be so, but hasn't been the case for at least three years. That's the BS the congress was using to justify the new law, which just told us how out of touch they were. Credit card companies cracked down several years ago on money transfers to offshore books. I'm not aware of any credit card company that has allowed an offshore gambling transaction for at least three years now. It's been five years at least since my major credit card company allowed it. You have to fund offshore accounts from a bank account (via wire transfers) or by e-check, cashier's check or Western Union. In every case, it's cash only up front.

Bookies operate on credit. That is how people get in trouble...chasing their losses by taking on more credit with the bookie by making larger bets that they don't have the money on hand to cover. With the credit card prohibition in place, that's now impossible to do on the net.

I'm waiting for the fist story in the media where some guy who blows his kids education funds on the stock market is reffered to as a degenerate investor.

_________________
“Mmmm. Move over, eggs. Bacon just got a new best friend - fudge.”

I have a friend who uses one of his credit cards on sports.com

From their site:

Credit Cards are processed right online in just a few seconds using our processor, Electronic Financial Services

We will process your Mastercard or Visa within seconds online

BD,
The gambling sites do take credit cards. But the US credit card banks won't allow it. Canadian banks, European banks and other foreign banks that issue credit cards allow their cards to be used for gambling....but the Justice Dept. and the Treasury Dept. cracked down with US banks several years ago. People in the US can try funding their acocunts with credit cards. The gambling site will accept it initially, but US credit card companies /banks will refuse to authorize the transaction.

Interesting that your friend can use a credit card on a gambling site. I know some credit card companies will allow 50 to 100 bucks on some poker sites, but I wasn't aware that any credit card company was authorizing transactions for sports books. If it's a US card, that's a bit of a surprise as I haven't heard of that in a few years. And his credit card company is taking a risk with the Treasury Dept. by allowing it.

I had the same reaction you do about this, but that's how he's been funding his account now for awhile, and he hasn't changed his approach at all.

From looking at sports.com, it looks to me like when you pay in with your card, you're actually making a payment to Electronic Financial Services - that must be the difference here.