<b>The Pinnacle Effect- Sports Book Decision Has Chilling Consequences</b>
written January 12, 2007
The online gambling industry has changed dramatically over the last decade. Perhaps the biggest news to ever plague sports betting occurred several months ago in the form of an Internet Gambling Bill. The legislation that recently passed both the House and the Senate makes it unequivocally clear that it is against the law for US citizens to gamble on the Internet.
The second most monumental event that comes to mind occurred back in 1998, when over twenty bookmakers were indicted for illegal activities with regards to Internet Gambling. One brave man, namely Jay Cohen, returned to the United States to fight the government. I was there at his trial. He never had a chance. He was found guilty of several charges related to bookmaking and he served almost two years in Prison.
And although the rise and fall of Aces Gold Sports Book is another unforgettable time that had devastating effects on many involved in the realm of online sports betting, the decision reached by Pinnacle Sports less than 24 hours ago to stop catering to US citizens ranks third on my list.
The reason that Pinnacle Sports' sudden compliance with US law is so catastrophic is largely due to the fact that Pinnacle has been regarded as one of the very best online sports books this industry has ever witnessed. In my opinion, they WERE the BEST. Whenever anyone asked for a sports book to join throughout the different message boards, Pinnacle was always mentioned and often listed first.
I had the privilege of meeting their "main man" on a couple of occasions and I talked with him quite often over the past nine years they have been in business. He is arguably the most intelligent man (tied with Jay Cohen) that I have ever encountered. More importantly, he was as honorable as they come. When he gave his word on anything, gamblers could always count on it. His bookmaking skills were second to nobody and he revolutionized our industry by being amongst the first to offer reduced juice. And no one could ever really out how he could be so profitable working with such low margins.
Several times when we chatted, I felt like I couldn't multi task because it took every ounce of gray matter left in my brain to follow his mind. He was as sharp as they come. What he lacked in personal and people skills at times could be multiplied exponentially by a mathematical mind set that only Einstein could follow regularly.
But now that the decision to not serve US citizens was made, gamblers have been asking if this is permanent and the answer is yes. For one thing I know about their main man is that he only sees black and white; doesn't believe in gray. Once he makes up his mind, it is done with. Pinnacle Sports will never serve US citizens again barring a sudden change in the law or until hell freezes over. I am that sure.
Unfortunately, the chilling effects are already occurring because gamblers who had money at Pinnacle are being refunded. This means they have more cash on hand, thereby needing less at other places, who have told me they are also being asked for more pay outs than usual. Furthermore, since Pinnacle was extremely generous when it came to helping out other sports books, there is money that now has to be given back to Pinnacle from these other bookmakers.
Gamblers are panicking because they wonder if anyone else will follow Pinnacle's decision to pull out of the US market in the near future. Although I don't know the answer, nor wish to speculate, there is one thing I do want to close with.
The bureaucrats in Washington should be ashamed of themselves for setting us back to the days of Prohibition. There is no way that Internet gambling will be stopped. More and more ILLEGAL local bookies are thriving because gamblers are choosing to do business with them because they believe it is safer. However, the reality is that it isn't.
I've heard more horror stories from gamblers who were given credit by unscrupulous hoods that end up with what is called the "H" (hospital) plan. They have either their fingers or hands broken because they can't pay their debts.
As a Psychiatrist, I can speak with medical certainty that both Alcohol and cigarettes are much more harmful to the human body than gambling is. Yet, we live in a society whose hypocrites in Washington would rather see us die from these vices rather than allow us free choice to gamble.
Let's all drink to that (since we can't gamble). :cheers
On second thought, I'll pass.
written by Kenneth B. Weitzner (The Shrink)
written January 12, 2007
The online gambling industry has changed dramatically over the last decade. Perhaps the biggest news to ever plague sports betting occurred several months ago in the form of an Internet Gambling Bill. The legislation that recently passed both the House and the Senate makes it unequivocally clear that it is against the law for US citizens to gamble on the Internet.
The second most monumental event that comes to mind occurred back in 1998, when over twenty bookmakers were indicted for illegal activities with regards to Internet Gambling. One brave man, namely Jay Cohen, returned to the United States to fight the government. I was there at his trial. He never had a chance. He was found guilty of several charges related to bookmaking and he served almost two years in Prison.
And although the rise and fall of Aces Gold Sports Book is another unforgettable time that had devastating effects on many involved in the realm of online sports betting, the decision reached by Pinnacle Sports less than 24 hours ago to stop catering to US citizens ranks third on my list.
The reason that Pinnacle Sports' sudden compliance with US law is so catastrophic is largely due to the fact that Pinnacle has been regarded as one of the very best online sports books this industry has ever witnessed. In my opinion, they WERE the BEST. Whenever anyone asked for a sports book to join throughout the different message boards, Pinnacle was always mentioned and often listed first.
I had the privilege of meeting their "main man" on a couple of occasions and I talked with him quite often over the past nine years they have been in business. He is arguably the most intelligent man (tied with Jay Cohen) that I have ever encountered. More importantly, he was as honorable as they come. When he gave his word on anything, gamblers could always count on it. His bookmaking skills were second to nobody and he revolutionized our industry by being amongst the first to offer reduced juice. And no one could ever really out how he could be so profitable working with such low margins.
Several times when we chatted, I felt like I couldn't multi task because it took every ounce of gray matter left in my brain to follow his mind. He was as sharp as they come. What he lacked in personal and people skills at times could be multiplied exponentially by a mathematical mind set that only Einstein could follow regularly.
But now that the decision to not serve US citizens was made, gamblers have been asking if this is permanent and the answer is yes. For one thing I know about their main man is that he only sees black and white; doesn't believe in gray. Once he makes up his mind, it is done with. Pinnacle Sports will never serve US citizens again barring a sudden change in the law or until hell freezes over. I am that sure.
Unfortunately, the chilling effects are already occurring because gamblers who had money at Pinnacle are being refunded. This means they have more cash on hand, thereby needing less at other places, who have told me they are also being asked for more pay outs than usual. Furthermore, since Pinnacle was extremely generous when it came to helping out other sports books, there is money that now has to be given back to Pinnacle from these other bookmakers.
Gamblers are panicking because they wonder if anyone else will follow Pinnacle's decision to pull out of the US market in the near future. Although I don't know the answer, nor wish to speculate, there is one thing I do want to close with.
The bureaucrats in Washington should be ashamed of themselves for setting us back to the days of Prohibition. There is no way that Internet gambling will be stopped. More and more ILLEGAL local bookies are thriving because gamblers are choosing to do business with them because they believe it is safer. However, the reality is that it isn't.
I've heard more horror stories from gamblers who were given credit by unscrupulous hoods that end up with what is called the "H" (hospital) plan. They have either their fingers or hands broken because they can't pay their debts.
As a Psychiatrist, I can speak with medical certainty that both Alcohol and cigarettes are much more harmful to the human body than gambling is. Yet, we live in a society whose hypocrites in Washington would rather see us die from these vices rather than allow us free choice to gamble.
Let's all drink to that (since we can't gamble). :cheers
On second thought, I'll pass.
written by Kenneth B. Weitzner (The Shrink)
