Late last Friday, Congress passed a law aimed at shutting down online gambling in general. This includes online poker in the United States. People are trying to make the case that poker isn’t a form of gambling any more than buying stock is, and it should be exempt from the new law, as horse racing and state-run lotteries are.
So now my insider friends are saying 888.com and partypoker.com both have plans to eliminate affiliate programs in the United States. This also means any revolving revenue will be lost.. eeeek…
Lookout Ringtones, Teeth Whitning, and Free Business Card offers! I have a feeling some competition on the way.
UPDATE: Official emails being sent out by partypartners.com
Dear Affiliate,
As you might be aware, on September 30, 2006 the United States Congress passed ‘The Safe Port Act’. That measure also contained certain provisions, known as the ‘Unlawful Internet Gambling Enforcement Act of 2006’.
On October 2, 2006 we made an announcement regarding the impact the legislation would have on business when, as expected, it is signed into law.
We just wanted to keep you informed about the latest developments, and address any queries that you might have regarding the Unlawful Internet Gambling Enforcement Act of 2006.
What is the impact of the act on our business?
PartyGaming will no longer accept wagers from US customers once the act becomes law.
Customers resident in the United States, or accessing us from the USA will no longer be able to access our real money gaming services. Customers will still be able to use our play money and non-gambling services. They will also be able to cash out their present balance if they wish to.
There will be no impact for non-US customers.
A detailed FAQ on the impact to US customers will be available on our gaming websites very shortly.
What does this mean for affiliates?
We no longer recognize US customers as real money players for our gambling services.
This means that with immediate effect, there will be no per sign up plan revenues accrued for new players from the United States. Percentage Plan revenues from US customers will continue until the point those customers are unable to play for real i.e. until the legislation becomes law.
Your statistics will continue to include US players in the RMP column, though they will not be included in your accruals. Soon after the act becomes a law, the RMP column will be modified to display only non-US RMP, retrospectively starting on October 2, 2006.
Your percentage plan revenues will include revenues from US customers, until the point those revenues stop.
US customers will also no longer be eligible for sign-up bonus incentives. Players who have already received bonuses will be able to cash out a part of the bonus amount, in proportion to the wagering restrictions that have been met.
Will I be able to cash out my earnings as usual?
Your September 2006 accruals will be processed on schedule, and you will be able to cash out your earnings as usual.
What does PartyPartners still have to offer me?
By remaining a part of PartyPartners, you will continue to enjoy the benefits of PartyGaming’s aggressive brand marketing strategy in non-US markets. PartyPartners will continue to offer you the best returns for your traffic, and has an excellent reputation for trust and integrity.
Will affiliates from the USA continue to be allowed to be a part of PartyPartners?
The restrictions apply only to customers located in the USA. There are no new restrictions that prevent affiliates based in the USA from promoting PartyGaming brands to non-US players.
You can also look at the PartyGaming Press Release on this topic for further details at www.partygaming.com
Please feel free to contact your respective account managers in case you have any further queries, and they will be glad to address them or alternatively you can write to us at affiliates@partypartners.com
Affiliate Team
do you think they will offer affiliates more money to speed up things international?
I don’t buy that for a MINUTE.
I had just finished building my f**king site and this comes along . . . damnit!!! So where do I turn now?
Is there a way to cloak using proxy or something for the U.S players or somehow to work around it? I am hoping there is.
Interesting i am rather skeptical about this..
You need to FUND your account and withdraw your winnings too not only login and gamble.
These companies will be done soon. European countries are also cracking down on online gambling. The smart ones sell their sites now before everyone realizes the impact this will have. Just look at the sales popping up over the digitalpoint.com sales/sites forums.
In the short term, the public companies (on the London exchange) will go through some consolodation and shake out, but the Asian market – and to a lesser extent, Australia – is/are ripe for the picking; and by many estimates, larger than the US market). Many of the Carribbean-based firms are have already moved in that direction and the affiliates will follow.
Surprised there’s no overt effort to simply deposit monies with third-party non-US accounts, who can then be used to pay for online gambling. A sort of “Offshore Paypal”. I figure the market’s already there, but just not in the mainstream consciousness as yet?
That’s a big hit for the online casinos market. Romania also followed United States example and turned online casinos illegal too
A few online poker sites have already stated that they will accept US players. I know Full Tilt is, along with Absolute and a few others.
The biggest problem will be that a lot of people who are good will stop playing because there are not gonna be any fish to play against. People who usually deposit $100 by credit card, and then blow through it each week aren’t gonna go through the trouble of setting up an offshore bank account or what ever will be necessary.
If Neteller caves in and says they won’t accept transfers, everyone is flat out fucked for the US market.
In my honest opinion though, I think this is setting the stage for the US land based casinos to have online poker/casino sites. It wouldnt surprise me if in a year we were all promoting/playing at Harrahs, MGM and Trump poker sites online. It could easily happen if a Dem is elected into office too.
-Justin
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Hi Shoemoney, when you say that “888.com and partypoker.com both have plans to eliminate affiliate programs in the United States” this is rather misleading since the e-mail you received quite clearly states “There are no new restrictions that prevent affiliates based in the USA from promoting PartyGaming brands to non-US players.”.
IMO, you should be re-targeting your marketing rather than giving up this niche – most of the well run online gambling companies have been actively building their non-us customer base in anticipation of this type of law. This is confirmed by the 888.com statement issued to the London Stock Exchange which states “In the six months to 30 June 2006 revenues from non US players amounted to approximately 48 per cent of the Group’s net gaming revenue and in the second quarter of 2006 approximately 68 per cent of first time depositors (new customers) were non US.”
Companies such as Partygaming, who derive 75% of their revenues from US based players, will be aggressively pursuing new players based in non-us countries – another argument that could be used for getting into this niche rather than getting out.
To the person who commented on European countries cracking down in a similar way, this is also misleading. Whilst some countries are doing this, others are also relaxing regulation (Spain and Italy for example) and it is EU policy that gambling comes under the same principles which underpin the free flow of other goods and services.
[…] Shoe has the latest on PartyPoker and 888’s decision to discontinue their U.S. affiliate programs in light of the recent ant-gambling bill that passed Congress last Friday. I know many people who have spent the last few years earning a living from Poker affiliate revenue are now considering cashing in their chips and getting out. […]
Maybe you guys can get the help of someone who lives in… let’s say France to work around that law 🙂 See what I mean?
Think about making money ethcially. NO PORN. NO DRUGS. NO GAMBLING. NO GUNS.
I make 2k a week and sleep very good.
ethically
Why is gambling unethical flypitcher?
Who is selling guns online?
[…] Credit cards are a thing of the past anyway.lot’s of credit cards are already blocked.But i did find these very funny; And another post on Shoemoney from PartyPartners.com (PartyPoker) :What is the impact of the act on our business?PartyGaming will no longer accept wagers from US customers once the act becomes law.Customers resident in the United States, or accessing us from the USA will no longer be able to access our real money gaming services. Customers will still be able to use our play money and non-gambling services. They will also be able to cash out their present balance if they wish to.There will be no impact for non-US customers. If they wish to No i don’t want it, you can keep my money s […]
i guess only public companies are now out of the game…i see many small operators thay still accept players
[…] Nice posts about recent gambling law. […]
If you read the bill that was passed by one corrupt senator you can clearly see that it is going to have very little effect on the players with respect to being able to deposit. Most players are already using a third party payment processor such as Neteller.
As a large poker affiliate I can tell you though that PartyPoker and 888.com pulling out of the U.S. market stings. My hope is that if they do re-enter the market at some point, we will get our players back.
And to the guy that thinks promoting gambling is unethical, I ask why? Everywhere you look, you’ll see ads for lottery or Vegas casinos. What makes online poker any worse?
We try not to add any affilate link but nice to know.
[…] has the latest on PartyPoker and 888’s decision to discontinue their U.S. affiliate programs in light of the recent […]
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