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Will Congressman Barney Frank’s On line There are rumors circulating among the Congressional Press, Poker Players and others that the legislation introduced by Congressman Barney Frank titled: Internet Gambling, Consumer Protection and Enforcement Act (H.R. 2267) may not pass this year. We believe Mr. Frank’s legislation will pass before December 1, 2009 in the same manner President George W. Bush’s Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) (#5364), that Mr. Frank wishes to overturn, became law by attaching the legislation to the “Safe Port Act of 2006”, an act of Congress in the United States, covering port security and to which the on line gambling measure was attached at the last moment, prohibiting the transfer of funds from financial institutions to Internet gambling sites, with notable exception of on line lotteries and horse/harness racing. H.R. 2267, if passed by Congress, legally sanctions on line Internet gaming in the U.S., the world’s largest gambling market. The primary incentive for passage of this legislation is the potential tax benefit to local, state and federal jurisdictions and the creation of jobs. Price WaterhouseCoopers and others recently estimated that Internet gambling in the U.S. could raise nearly $52-$65 billion in taxable revenue over the next decade (by some estimates $3.0 billion annually starting early in 2010). Why would anyone not support early approval of H.R. 2267 and leave the potential billions of dollars of revenue off the table beyond December 1, 2009? If H.R. 2267 is not passed before December 1, 2009 then the Federal financial regulations will require credit cards, banks and other payment systems to block any money transfer to gambling businesses who engage in unlawful internet gambling. Many financial institutions already have implemented such policies voluntarily by refusing to honor credit card transactions that violate UIGEA. Both UIGEA and H.R. 2267 leave it up to each state’s discretion how they wish to implement on line Internet gambling. In our press release on July 10, 2009 KENILWORTH READIES FOR GLOBAL Kenilworth owns patents in the US and fifty-one other countries including China, Japan and Russia which presently offer gaming in more than 2,000 licensed regulated casinos. The patents cover systems and methods to allow players from remote locations to wager on games such as roulette, craps and baccarat, as if they are actually participating in the live in-progress games at the casino table of their choosing, from a selection of casinos anywhere in the world. When state operated lotteries become involved, a prime motive will be to ensure responsible gambling by managing the wagering with data systems which can identify problem gamblers and limit or shut down players with identifiable patterns of compulsive gambling. A further requirement for any system sanctioned by states will be the prevention of underage participation. Lotteries will also limit the amount that may be deposited or held on deposit at specified intervals of days, weeks or months. The ability of Kenilworth’s patented system to support all of these anticipated requirements is considered to be a significant competitive advantage in the emerging market. In our prior release we commented on the seizure by the Federal Department of Justice (DOJ) of $33 million and, since then, additional millions of dollars belonging to Internet poker players. We believe it is an indication that President Obama’s administration is going to prohibit on line Internet poker playing and permit H.R. 2267 as a compromise with religious organizations, concerned citizens and anti-gambling groups. To date President Obama has not indicated his position on H.R. 2267. In our prior release Herbert Lindo, Chairman and CEO of Kenilworth stated: "we believe that, as has already happened in the field of horse racing, simulcasts of remote casino games to homes, cell phones, racetracks, hotels, resorts, restaurants and bars will become a major trend in gaming. Since the development of the Internet, millions of people have chosen to gamble on line and today Internet gambling is offered in many different countries under a variety of licensing and regulatory regimes. It appears there will be a potential annual global market of as much as $500 billion in total Internet wagering in the near future.” Lindo further stated that: “Denmark, Sweden, Poland, Switzerland and France and more recently Spain and Norway have either passed or are preparing to pass legislation to open the market for remote live games from casinos within their own borders. The legislation is also intended to protect gamblers from manipulation by discouraging virtual wagering and betting on number generated games from studios in the U.K and other Channel Isles. These are likely to be the first sanctioned Internet gaming activities to yield significant tax revenues. The Kenilworth system being tested by Caribbean is intended to support wagering for such live casino table game broadcasts. Our intent is to aggressively market this gaming technology and pursue licensing arrangements with casino operators in all nations where we enjoy patent protection." Passage of H.R. 2267 will help Las Vegas casino operators to attract foreigners that will wish to visit the gambling capital of the world and the casino that they enjoyed playing along from their homes. The same way foreigners visit the U.S. to purchase luxury merchandise at half the price they would pay at home. Most currencies, primarily Euros, translate in 50% more purchasing power exchanged for U.S. dollars. We expect to receive the electronic equipment (servers) and television cameras to arrive shortly to start the Test Program (the equipment was ordered by an electronic supplier located in the Dominican Republic). In the meantime, the three software designers that also will write the software for the Texas Hold’em tournaments have returned to Costa Rica where the identical equipment required for our simulcasts is available in the studio that was used to broadcast live games to the European market which was halted last December, when we cancelled our Deal for Real, Ltd. acquisition (see details in prior statements in this website).
FORWARD-LOOKING STATEMENT This report contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-Q and other filings made by the Company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this report are made as of the date hereof and Kenilworth undertakes no obligation to update such statements.
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