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Aladdin's Gold Sports Book Four Years Later

If you've been lurking around the offshore betting industry for any length of time, the words Alladin's Gold will likely send shivers up your spine.

The company single-handedly sent the burgeoning Internet sports betting industry into a tailspin and left bettors permanently skeptical of the so-called security regulations and standards in place around the world.

We're quickly approaching the four-year anniversary of the Alladin's Gold flame-out in Antigua and some folks over at the Major Wager sportsbook watchdog site are reminiscing, under the thread "A rather interesting update on the way Antigua Gaming is handling the Alladin's failure."

For those not familiar with the Alladin's Gold story, here's a brief history lesson.

The company set up shop in the regulated jurisdiction of Antigua and was a quite attractive out for having unique lines and huge sign-up bonuses (both are huge warning signs to stay away). Nevertheless, people flocked to the sportsbook, feeling it was safe because it is a government-regulated jurisdiction.

And then the bomb dropped on March 19, 2002.

Alladin front man Eddie Hadeed wrote this letter, which was posted on the Major Wager betting information site:

"Much to my disapointment, Alladinsgold has been given written order to cease betting operations by the Directorate Of Offshore Gaming in Antigua pending a review of the company's financial position. Until such time Alladin's Gold will abide by this directive.

As many of you know I have willed to continue the operations and make efforts to pay all clients until such time that a buyer was secured. I have expressed these intentions to the Directorate and they have responded as afore mentioned.

This directive comes shortly after a post I made at Bettorsworld. Alladin's Gold will advise its clients as soon as we know more. If there are any interested parties in the purchase of Alladins Gold or its client base please contact Jeff at Bettorsworld. I have contacted the owners of Alladin Entertainment in this regard."

Eddie Hadeed

Fast-forward to late February, 2006, and Alladin's Gold never re-opened, and despite the bravado from the Directorate of Offshore Gaming, nothing has been done to pay back the hundreds - if not thousands - of people who had deposits with the sportsbook when it shut its doors.

At least one bettor is still on the hunt for his money. Major Wager watchdog owner Russ Hawkins should be commended for refusing to let the Alladin's Gold black eye go away.

Hawkins posted an e-mail he received from one Alladin victim who is incredible frustrated by the lack of interest he has seen from Antigua's government regulatory body.

"In regards to the efforts of the Antiguan government to deal with this situation, in January I made an enquiry to Kaye McDonald, director of gaming, as to what the Antiguan government has done to get players paid any money owed money by Alladin's Gold/Eddie Hadeed; and prosecute Eddie Hadeed and any other individuals that may have committed crimes in association with the failure of Alladin's Gold."

The sportsbook victim received an email from McDonald on Feb. 8, 2006, which looked suspiciously like a form letter - the kind you get when you're not selected for a job.

"We advise that all claimants are afforded legal redress on the matter through our judiciary system by filing civil suits against Mr. Edward Hadeed. Additionally, the matter is before the new Financial Services Regulatory Commission, Board of Directors who are reviewing the matter through the appropriate legal channels and in keeping with the Interactive Gaming and Interactive Wagering Regulations."

The poster said he had previously spoken with McDonald's predecessor, Ron Maginley, when he was the gaming director. And apparently "it's the same old story from the government. It appears that nothing is actually being done to rectify the situation."

Naturally, whenever an old wound is exposed, the same painful feelings rush back to the surface. And the reaction from posters to this recent re-hashing of the Alladin's Gold situation solicited the same kinds of responses we saw when Alladin's first flamed out.

"Russ, in no way am I defending Antigua, but it's no different for US citizens anywhere else in the world either," writes a bettor with the nic, Shoebox. "I've been saying this for five years here. It doesn't matter where you send your money.

"It doesn't matter if there is escrow or not. It all depends on who is behind the operation. If they are good guys and want to pay you, they will. If they are scumbags and want to stiff you they will. Doesn't matter if it's Costa Rica, Curacao, DR, Jamaica, VZ, etc.... It just doesn't matter. It's not like Antigua is doing something the other places would do different."

I would agree with most of what Shoebox has to say, except for one thing. Antigua flies a flag of gambling regulations. Which in and of itself is meant to provide a cyber security blanket for bettors. What is the purpose of a regulatory body if when it really needs to show its teeth, it spins, and runs in the other direction?

Ironically, a bettor with the handle, Mr. Negative, agrees with me. "Big difference between Costa Rica and Antigua. Costa Rica is a jurisdiction of convenience while Antigua claims to be a 'regulated' jurisdiction. They charge over $100K a year to have a license in their jurisdiction."

So, the natural next question would be what exactly is Antigua doing with that money? I'd like to think it's in an account somewhere in case an Alladin's Gold situation surfaces. Unfortunately, my cynical opinion would be that it's simply a cash-grab for the government.

One poster takes a forget-it-and-move-on approach. Don Eagleston writes: "The books are no different that any other business that goes under. You lose your money. Hell, Vegas didn't pay when a couple books went under 20 years ago. Perhaps that wouldn't happen today. Watch dog cites are the best bet, but even they only help you get your money out before the bank run."

Ultimately, the Internet sportsbook industry needs a legitimate regulatory body. One that is so clean in reputation that good sportsbooks will get in line to sign up.

Hawkins pointed out in this thread that Antigua had that opportunity. "If Antigua was to handle this as they should, the amount of business they would get from that goodwill alone would be staggering. Every legit book would get licensed there for the players' security alone."

With new anti-gambling legislation slowly working its way toward the U.S. Senate, another Alladin' Gold debacle would just add fuel to the fire for those politicians interested in "protecting" American gamblers from the evil unregulated world of the Internet.

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