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."
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