Gaming guru bets on courts
The Boston Globe,By Connie Paige, Globe Correspondent
Michael Corfman believes he knows when to hold ‘em and when to fold ‘em.
Corfman’s website and assorted directories and almanacs make his business something of a Dun & Bradstreet of the gambling industry. Casinocity.com provides gaming-related statistics, news, and links of interest to gaming operators and their customers. It also features ads for online gambling sites — something that may be of interest to the federal government, which has declared that such advertising is illegal.
Corfman has taken a high-stakes gamble: He decided to sue the government before it prosecuted him.
‘’This is an important First Amendment case,” Corfman said last week. ‘’The government can say, ‘We might prosecute you,’ and it chills free speech.”
Corfman’s business is based in Newton, where he and his wife and business partner, Sylvia, also live.
‘’We always joke about Newton being the center of the gaming industry,” said Corfman, who has made casinocity.com an industry leader, with annual revenues of almost $5 million.
A 1975 graduate of Massachusetts Institute of Technology in computer science, Corfman worked as a software engineer at several companies, including Digital Equipment Corp. In 1990, he started a traditional consulting business, Information Technology Systems. He then turned to building websites.
He created casinocity.com primarily as a demonstration site to show off his computer skills at Internet World ‘95, a trade show in Boston.
‘’That was a fabulous show for us,” Corfman said. ‘’People loved what we’d done. In those days, the Web was just getting started. It was all static pages. There was nothing like that around.”
Within five years, Corfman’s consulting firm had 45 employees, but then business ‘’vanished,” he said.
He rode out the economic downturn by investing more heavily in casinocity.com. Today, the business has recovered, has 30 employees, and is advertising for six more.
Corfman does not gamble for fun. He jokes that the only time he tried his hand at it was when he was awarded a dollar’s worth of nickels at a casino in Colorado, played the slots with them, and won $6 or $7. ‘’I ended up deciding I could never ever again in my life be up 600 to 700 percent on money I got for free,” he said.
Still, he enjoys his business immensely, he said.
‘’For me, it’s an issue of gathering information and finding all sorts of ways to use it,” he said.
Corfman hedges his bets, working to curb gambling as well as to encourage it. He said he was developing programs for online gaming sites that would enable gamblers to set limits for themselves. And until recently, he hosted a website for the Massachusetts Council on Compulsive Gambling.
Kathleen Scanlan, the group’s executive director, said the arrangement was discontinued only because the group had technical needs that Corfman’s office could not accommodate. ‘’It wasn’t him; it was us,” she said.
Corfman sees gambling as ingrained in American life. He pointed out that Angier Elementary School in Waban, which his daughter attends, is planning a casino night this winter to raise money.
The casinocity.com site is gaudy, and blinks with offers for sweepstakes and invitations to play online games ‘’NOW!!!” Through the site, he sells directories and almanacs bristling with statistics about casinos worldwide, online betting, Indian gaming, sports betting, horse tracks, dog tracks, cruise ships, and lotteries — just about everything except finding a bookie.
Did you know, for example, that in 2004, gambling operators in the United states — after paying off winnings — cleared $78 billion? That 228 Indian tribes operated 405 gaming facilities in 30 states? That Massachusetts ranked 18th of the 50 states in its revenue from gaming (mostly lottery-related)? You can find these and other facts by buying an annual subscription for $700 or a directory for $150 from Corfman’s company. A subscription buys you the current and next hardcopy edition of the semi-annual Gaming Business Directory and CD with online updates as they happen.
Corfman also publishes an online news service called Casino City Times. The latest issue features gaming gurus who offer advice about such matters as ‘’Can you beat the slots?” (Answer: No.) Casino City Times is third on the list of Yahoo! links for gambling information.
While Corfman’s business is booming, he could be in legal jeopardy. In June 2003, the Justice Department sent letters to such media organizations as the Magazine Publishers of America, National Newspaper Association, and National Association of Broadcasters stating that online gambling is illegal and, according to spokeswoman Jaclyn Lesch, that advertising online gambling ‘’may be aiding and abetting illegal activity.”
Although Corfman has never been directly threatened, he was drawn into the fray about a year and a half ago, when he lost a bid to partner with A&E Television Networks on a spinoff show from the book ‘’Bringing Down the House: The Inside Story of Six MIT Students Who Took Las Vegas for Millions,” by Ben Mezrich. The network had second thoughts because of the Justice Department notice, Corfman said.
Corfman decided to call the government’s bluff. He hired Barry Richard, one of the attorneys who represented President Bush after the disputed 2000 election. In August 2004, the company sued the government, seeking a declaratory judgment that advertising online casinos and sports books is constitutionally protected commercial free speech. A federal district court ruled against him, but Corfman said he hoped for success in the Fifth Circuit Court of Appeals, now based in Houston.
Oral arguments in the case are scheduled for a hearing on Dec. 7.
And thumbing his nose once again at the feds, Corfman said he now has a deal with CBS-TV in New York City to run ads for casinocity.com in Times Square through New Year’s day.