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The analyses, suggestions, guesses and conclusions in several articles are based on an intrepid fictional gambling website, Hypo Online Gaming.com.
Hypo is a corporation formed under the laws of the Central American nation of Costa Rica.
It offers real-money, casino-style gambling activities over the World Wide Web on the Internet. Its banked gambling games include slot machine simulations, 21, roulette, craps and the like. It also has a related online poker cardroom, which offers play-money and real-money forms of the most popular poker games, including Texas Hold'em, Omaha High-Lo and 7-Card Stud, as well as both high and low draw poker. In these poker games it collects a fee (capped at a stated dollar amount) that varies in each hand based on the amount in the pot that hand.
It accepts deposits into player’s real-money accounts from various credit and debit card issuers, wire and money transfer services, and checks delivered to its offices in Costa Rica, all of which proceeds are deposited into its only bank account, which is in a bank chartered by and located in Antigua, an island nation in the Caribbean Sea.
No player on the Hypo website who fills out the online form to open an account is rejected based on his or her stated residence address or on the location of the server of the Internet service provider through whom the player connects with the website. About 60% of the gambling activity on the website is from accounts with addresses in the United States, with many accounts having stated addresses in California, Oregon and Nevada.
It sends emails to various lists of gamblers and to its customers advertising its activities and offering incentives to gamble on its website. The incentives take the form of periodically offering customers up to a 20% bonus on deposits the customer makes to his or her account and by adding money to the prize pools that can be won by players.
Hypo is owned by two shareholders:
Hypo’s offices are located in an attractive high rise office building in Costa Rica where it has thirty employees, four of whom are U.S. citizens resident in Costa Rica and the rest of whom are Costa Rican citizens and residents.
Hypo is a client of the Mohawks of Kahnawake band of Canadian Indians. It uses their computer servers, which are located near Montreal, Canada, to access the World Wide Web on the Internet.
Hypo is also a licensee of the Kahnawake Gaming Commission, an agency of the Mohawks of Kahnawake band of Canadian Indians, which has issued about 75 licenses to date to online gambling websites, all of whom access the World Wide Web through the Band’s computer servers.
Hypo recently began advertising. on a cable television network program that is available in about half the U.S. TV households, resulting in a tripling of its business. Its advertisements are starred in by a consultant to Hypo who is also a well-known poker player and an announcer for the program shown on the cable network in connection with which the advertisements are run.
Hypo is a member of several private, unregulated, non-governmental organizations that issue certifications attesting to various aspects of the integrity of qualifying individual gambling websites that are subscribers to or members of the respective organizations.
|Gambling Software , Inc.
||A Delaware corporation whose offices are in Oregon, in which it qualified to do business as a “foreign” (i.e. Delaware) corporation. It wrote, owns, licenses and continues to periodically update the software that Hypo uses to run its website. It receives a royalty under that license of 60% of the gross income of Hypo. The shareholders of Gambling Software, Inc. are all U.S. citizens, resident in various states, including California, Nevada and Utah. Most of these shareholders are also employees of the company or, directly or indirectly, consultants or advisors to Hypo. Some of these shareholders purchased their shares in the company for cash, and some earned their shares for services such as helping to write the software and helping to promote the Hypo website.
|Mr. Rock Founder
||A U.S. citizen and a resident of Oregon, who is also a substantial shareholder of Gambling Software, Inc.