In an e-mail sent to its affiliates on Thursday, the Fortune Lounge Group announced that it would no longer accept new players from the United States beginning on Monday, November 10th. Instead, the Group will shift its attention to bringing in new customers from the rest of the world. The Fortune Lounge Group owns PokerTime and Royal Vegas Poker.
The e-mail read, “We will continue to work with affiliates in the U.S. on non-U.S. acquisitions and would like to assure you that this development will strengthen our focus and attention on all non-U.S. markets. We see this as an exciting opportunity for Fortune Affiliates and our valued partners as we aim to dominate new markets across the globe.” A call placed to customer support of PokerTime confirmed the news that new players from the United States will not be accepted as of November 10th. However, Americans with existing accounts will still be able to access the online poker room.
The news comes on the heels of recent announcements by the Microgaming and Merge Gaming networks of stricter policies towards players from the United States. The Merge Gaming Network recently blocked new customers from Kentucky from signing up accounts. However, existing customers from the state can continue to play as normal.
The Microgaming Network has blocked access by residents of Illinois, Indiana, Kentucky, Louisiana, Michigan, Nevada, New Jersey, New York, Oregon, South Dakota, Washington, Wisconsin, and Utah. The notable addition to that list was Kentucky, where a lawsuit is ongoing between several industry groups and the Justice and Public Safety Cabinet, which has been charged with executing an order by Governor Steve Beshear to seize and force the forfeiture of 141 internet gambling domain names, including those belonging to PokerStars, Ultimate Bet, Full Tilt Poker, Cake Poker, and Absolute Poker.
Fortune Lounge casinos include 7Sultans, Desert Dollar, Fortune Room, Platinum Play, Royal Vegas, Vegas Palms, Vegas Towers, Vegas Villa, and Royal Vegas Cantonese. Affected online poker rooms include PokerTime and Royal Vegas.
The stance towards customers from the United States may change if legislation in the United States legalizing and regulating internet gambling and online poker is passed. However, with the official end of the 2008 Congressional session quickly approaching, every bill must be reintroduced in the new Congress next year. This includes HR 2140, sponsored by Congressman Barney Frank (D-MA), that establishes a complete licensing and regulatory framework for the industry.
In addition, Congressman Robert Wexler (D-FL) will need to reintroduce HR 2610, the Skill Game Protection Act, which exempts games like online poker, where the action is primarily player against player and not player versus the house, from existing internet gambling law. Online bridge and mah jong also constitute games of skill. Congressman Jim McDermott (D-WA) has introduced legislation outlining a tax structure for the internet gambling industry. A study by PriceWaterhouseCoopers estimated that up to $40 billion could be generated over a 10 year period by taxation of the industry.
The litigation in Kentucky will next come to a head on November 18th, when a three judge Appeals Court panel will meet to decide whether to accept petitions filed by the Interactive Media Entertainment and Gaming Association (iMEGA) and Interactive Gaming Council (IGC) asking the court to intervene in the case. A final forfeiture hearing of the 141 internet gambling domain names is scheduled for December 3rd.
