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Patrick Ralls Of AdultStudios.net Talks About The Coming Crackdown
2003-10-30 19:28:26

I talk by phone with Patrick Ralls from Adultstudios.net.

Luke: "When did you get into online gambling?"

Patrick, 29 years old: "It was late 1998. My father passed away in 1998 and left me some money. Enough to start a business. That was back when the stock market was booming. The stocks of all companies on the Internet started going up. I figured online gambling had to be next. I did my research and got a lot of penny stocks on online gambling companies. I did good. I bought a stock at 67c and my average sell was for $14 per share.

"That gave me enough money to start a business - PM Promotions. My business partner was Mark Resnick. We started startcasino.com. It's a website that gives information to entrepreneurs on how to start an online gambling business. How to get a license, set up servers in the Caribbean, all that stuff.

"I did that for two years. I got celebrities like Rodney Dangerfield to start their own online casino. It was short-lived because of the new laws passed against Internet gambling. I sold my half to my partner. Over three years later, he's doing well."

Luke: "Were you pursued by law enforcement?"

Pat: "Oh no. Back then was when online gaming took off. I was aware that if I did pursue it, I might be subjected to the feds. I moved to the Caribbean and I was thinking that I had my Mom in the United States... I could've stayed in the Caribbean and had my own online casino and made a lot of money. But I might never have been able to go back to the United States. I just worked for companies down there.

"I'm glad. With all the stuff happening now, it comes back to haunt people. The feds are asking for reports from 1997 for all these online gaming companies and the radio industry, Clear Channel. That's unheard of."

Luke: "Did you read that article in The New York Times Sunday Magazine about all those online gambling site operators who live and work out of Costa Rica? They're afraid to come back to the United States in case they get arrested."

Pat: "Believe me, the sportsbook owners will. There are only two places in the world where it is legal to set up online gambling - Costa Rica and Antigua in the Caribbean. There are other countries that are shady. All the real businessmen who started online sportsbooks first went to Antigua. But then that government is a scammer so many of the operations went to Costa Rica.

"Costa Rica wasn't aware of the potential of it but now they are. Their government is moving in to make a lot of money, holding these guys hostage. Online gambling is huge."

Luke: "What do you think are the chances of this happening to the porn industry?"

Pat: "[Attorney General] John Ashcroft's ready. Three days later after subpoenas were sent to the three major radio chains who had sports radio show with sportsbook advertising, the chains stopped all such advertising.

"This gambling crackdown is trying to connect websites with affiliate programs. If your an affiliate, the government will try to charge you with being a casino operator. If that works, they'll do that to porn. Where the server is where the company is.

"If you have a server in Missouri, and you sell porn across state lines, you are going to get prosecuted. They are going to look at where people's servers are. I know for a fact the feds are going to go after the adult industry."

Luke: "I'm wondering why they haven't done it earlier?"

Pat: "Because of 9/11. Big stuff is going to happen in the next three months. If you read what John Ashcroft said after they busted Extreme Associates, he said they were looking at 50 companies. That's no bullsh--. I bet they will get seven or eight companies at one time and make a big news story out of it.

"This Porn Awareness Week is just something to get people ready. The government is sly.

"I'm more of an entrepreneur, marketer. I follow the law."

Luke: "How did you get into the porn industry?"

Pat: "Because of adultDVDtalk.com."

Luke: "They're great."

Pat: "I hate it. I'm 29. The last two years, the stuff I've seen with online gambling, credit card issues, third party processors going broke...

"I came back to the United States 15 months ago. I was burned out from working three years straight. I've been a big fan of porn all my life. The companies I watched were Anabolic and Diabolic. Then Red Light District came out. I love entrepreneur stories. To see how that company rose just amazed me. I started renting their videos and I was a big fan of their product. I started collecting their book covers and I started a Yahoo group. I knew nothing about adult websites. I knew nothing about the adult industry.

"After going to AdultDVDTalk and seeing owners and directors talking, I figured I'd start a message board for Red Light District. I made one. I went to AdultDVDTalk and posted my link at the bottom of my post. They deleted the link. I had a falling out with the owner, Stephanie.

"I got mad. I was amazed how they just shut me out. This was nine months ago. I noticed how many people they banned, such as people from JM Productions. Directors, studio owners, who are trying to make a living and put the word out on their product.

"I believe AdultDVDTalk has a monopoly on adult DVDs online. They channel all the traffic and what's being said... They delete a lot of posts. Stuff that people should know.

"They're friends with people at RAME.net. I was trying to get my message board out there. Out of ten posts, not once did RAME accept my post. I think Stephanie put the word out that nobody should post me. I could not post anywhere on the net.

"Now there's adultfyi.com. Gene Ross has come back. You.

"Next week I'm coming out with studioaffiliateprograms.com. It's going to bring all the studios together. I'm going to have a message board. I'm starting an association. Every member pays a monthly fee. Get everyone together working with each other.

"It will become the one place that webmasters will go to promote studios.

"I would never sign up with a website company I have not heard of. I know there are great companies like Silvercash, but they're not recognized among the general public. But a studio... People will spend $30 to join a Hustler site. But who is Lightspeed Cash? I know who Anabolic is. I think there's a market for studio affiliate programs. Their content is there. They have name recognition."