This Insurance Idea Is Idiotic

[hanover00]

This idea that's floating around makes no sense and will never go anywhere. Anyone who is promising to look into it is just pacifying people or wasting his time.
Why do bettors who have been recently screwed look to be screwed again in a new scheme? Who's going to hold the "escrow"? Who will have rights to access the escrow? How will monies be distributed? Who decides what is a valid claim? How will monies be replenished, especially considering that there will be a new blow-up monthly? Someone said that players should pay in. What shit is that? So they could get screwed by the failed book AND the insurance fund? Someone offered to kick in $50,000. Nice, but how far will that go? Are you prepared to kick in 50k a month? You'll need to. How do you handle it when the second month there is no money left and there is a new blow-up? The first group was lucky, the second group unhappy, right?
Please, no one is going to organize a disparate group of "business" men for the protection of customers. Stop dreaming.
Here's what is needed: One or two books should take the lead and get bonded by a bank or insurance company. I don't want anyone involved in the industry to be involved in the bonding. The bonding should be for a certain % of customer funds to be audited regularly. The book can then say, "bonded to 50%" or "bonded to 75%" or even 100% if they are Australian and probably have to anyway. Obviously, the customer can instantly assess his risk with that book. The bonding will require that the book put up an escrow with a bank or ins co that is refundable should they exit the business legally.
Now, if one or two books start this, they will instantly have a competitive advantage over all others who are unwilling or unable to get their own bond. No more will we have to rely on, "I know Billy at Sux Book, he is a great guy. He would never screw anyone." Post up a bond or get out of business.

 

[Dante]

good ideas and GREAT post hanover...I hope the books READ this and someone acts on it...would be awesome

 

[drunkguy]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by hanover00:
Now, if one or two books start this, they will instantly have a competitive advantage over all others who are unwilling or unable to get their own bond.<HR></BLOCKQUOTE>

If some of these 2nd-tier books want to survive, this is a perfect idea to move on to the upper level. A bonded book would attract post-up money much easier, even without offering a bonus, etc.

excellent post hanover

 

[LIFESABET]

Here's the part I just dont understand.

These offshore jurisdictions who charge a licensing fee will automatically deter fly-by-night thieves. But there is still a possibility that a book can get into trouble even if they start out with good intentions.

So I ask every jurisdiction out there. What good are you? and why should anyone pay for a license? What do you actually get for a license other than the right to steal with your government turning the other cheek.

These offshore jurisdictions selling licenses to operate in gaming need to step up to the plate and explain what that license is for.

Most dont even have a clue what gaming is, and wouldnt understand how to resolve a problem anyways. They need to learn just a tad bit about the industry that they offer licenses for.
They also need a phone number where clients of their licenses can report problems. It doesnt have to be toll free, it can even be an unmanned recorder, but it needs to be accessible and they need to follow through with claims.

Next, these jurisdictions need to ramp up their standards. They can still offer offshore status, freedom to operate without suffocating red-tape. But they need to at least demand that the company can pass an audit, by more than one trusted audit firm, multiple times per year, and that audit should show no more and no less than 'ACME GAMING is 142% solvent against customer funds on such and such a date' and these single page audit reports should be publicly available on the gaming licensor's website.

Time to step up. Why would anyone ever pay for a license when these jurisdictions do nothing to maintain the value of the license itself. Every jurisdiction has allowed their licenses to be sublet, or they have sold them at lower values, or they have completely diluted the value of all licensees by not acting responsibly in making sure that their licensees are solvent.

just my thoughts,
-lab

 

[LIFESABET]

While Im ranting and raving like the lunitic I am.

Doesn't everybody know that an offshore company in an offshore jurisdiction also must have a local company in order to operate and pay their local employees?

This brings that local company into the local jurisdiction and allows some type of access to the local courts, because stealing is stealing no matter where you are, and its always illegal. No local labor departments are going to stand for their voting citizens to get stiffed by an offshore entity that is not paying heavily for taxes. Any offshore shop going broke is normally going to stiff their employees and local providers before they stiff all of their clients. So all it will take is a few scandals in the newspapers, and these local jurisdictions are going to have to answer to their people why they are allowing foreignors to come in, make a bunch of money, and stiff the locals.

Jurisdictions, its time to save your own ass, and be a little responsible. You can make alot more money, bring more foreign dollars into your economies, and attract bigger and better operators if you just get off the pot and start doing what you should be doing as a regulatory licensing department.

Just had to get that off my chest.
-lab

 

[hanover00]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> If some of these 2nd-tier books want to survive, this is a perfect idea to move on to the upper level. A bonded book would attract post-up money much easier, even without offering a bonus, etc.
<HR></BLOCKQUOTE>
Drunkguy, good point. The shit would be separated from the well capitalized players immediately. It would give an opportunity to the less well known books to skip some marketing costs (sorry Rx) and move right into the level of legitimate books.

 

[hanover00]

LIFESABET, my experience in business is that government regulation ,whether in the U.S. or off-shore, is pretty ineffective at preventing fraud and poor business practices. That will not change.
Bonding represents a market solution to the issue. If you have shit for finances, you won't be able to get bonded, end of story. Play there at your own risk. No need to rely on some ineffective government official.