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It depends on your state?
States drive poker action
LAS VEGAS REVIEW-JOURNAL
Posted: Jun. 29, 2012 | 2:05 a.m.
Poker players will receive an update from their top lobbying organization on legislative efforts to license and regulate online poker in the United States during a special town hall-style meeting Saturday at the Rio.
When it comes to federal efforts, however, it might be a short conversation.
The Poker Players Alliance is using the World Series of Poker, which has attracted thousands of players to Las Vegas, to update the poker community on what's taking place in various states.
John Pappas, the alliance's executive director, said he expects to hear from players who have been sidelined from Internet play since the April 15, 2011, crackdown on Internet poker by the U.S. Department of Justice.
Pappas will be joined by Rep. Joe Barton, R-Texas, the sponsor of House Resolution 2366, which calls for legalization of Internet poker, and professional poker players Greg Raymer - the 2004 World Series of Poker Main Event champion - and Linda Johnson, who have lobbied on behalf of the Poker Players Alliance in Washington, D.C.
Pappas said Congress has gone silent on Internet poker in recent months while speculation continues that Sen. John Kyl, R-Ariz., and Senate Majority Leader Harry Reid are working behind the scenes on potential legislation. Kyl and Reid during the 2010 lame duck session sponsored Internet poker legislation that went nowhere.
"Obviously, there is not a lot to discuss about Congress," Pappas said Thursday. "What were really looking at is what is happening on the state level."
Nevada is the only state with Internet poker laws on the books, which would allow gamblers to play for real money on the Internet within Nevada's boundaries. State gaming regulators are beginning the licensing process but the poker websites may not be operating until 2013.
Poker Players Alliance Nevada State Director Lupe Soto will discuss the state's situation. Other states are pressing forward with Internet poker legislation.
The Delaware Senate on Wednesday approved a House bill that would allow the state to conduct online gaming. Gov. Jack Markell, who backed the measure, is expected to sign a bill to make Delaware the first state in the nation to legalize full-scale casino betting on the Internet. Online slot machine play and casino games such as blackjack and poker will be accessible through each Delaware casino's website, controlled centrally by the state Lottery Office.
"This is why we're supportive of a federal strategy moving forward," Pappas said. "A federal solution is the cleanest way to move forward."
The Poker Players Alliance hopes to get input from players when it conducts the session at 12:15 p.m. in the Belize conference room.
This will be the group's fourth town hall meeting. It held two in Florida and one in Cincinnati that drew poker players from Ohio, Kentucky and Indiana.
Pappas said much of what happens in Washington surrounding poker depends on the outcome of November elections and the future makeup of Congress. He said the lame duck session after the election could include an Internet poker bill.
"It's not something that will happen overnight," Pappas said.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
Trending topics:businesscasino
Looking for a dance partner? Let's GO!
7/1/2012
Nevada may need partners for Net pokerTools
Gaming stocks swoon in JunePosted: Jul. 1, 2012 | 2:02 a.m.
Two of the state's largest slot machine manufacturers received Nevada's first interactive gaming licenses in June. Regulators could license three more suppliers this month.
Another 30-plus casino operators and gaming equipment providers have interactive license applications on file with the Gaming Control Board. If all goes as planned, gaming regulators could rule on two or three applications per month well into 2013.
Meanwhile, Nevada has handed the technology certification process for Internet gaming systems to two of the industry's largest testing laboratories, which have certified the equipment used in legal online gaming worldwide.
Based on industry talk, Nevada could have 20 online gaming websites launched in 2013. So why must online poker players wait even longer to place their bets?
Numbers.
Unless the global Internet poker community decides en masse to reinvigorate the Las Vegas housing market, there just aren't enough players residing in Nevada to make intrastate online play a lucrative return on investment.
"It's all about liquidity, the more players you can attract to your website, the better," Bally Technologies Chief Executive Officer Richard Haddrill said shortly after his company was awarded Nevada Interactive Gaming License No. 1 on June 21.
Some wonder whether Nevada could partner with other states - California, New York and New Jersey immediately come to mind - to increase the player pool through interstate compacts.
How this would work - regulating the gambling, sharing gross gaming tax revenues and fees - is a whole other column.
The first step is to figure out whether Nevada can find a dance partner. In the process, the state gains more Internet poker players and creates a network for Nevada to earn a slice of the estimated $4 billion to $6 billion per year that Americans wagered online before the April 15, 2011, "Black Friday" crackdown by the U.S. Department of Justice.
American Gaming Association President Frank Fahrenkopf Jr., the industry's chief Washington, D.C., lobbyist, said partnering with another state might take an act of Congress - literally.
Fahrenkopf told Nevada's Gaming Policy Committee on June 14 that federal lawmakers have historically shown little concern over interstate compacts, such as Nevada's agreement with California over management of Lake Tahoe.
Gaming is different.
"I can assure you with a controversial subject such as gaming, I can see some people in the Republican party on the right, and some Democrats on the left, who might want to exercise Congress' power," Fahrenkopf said.
Several states are in various stages of legalizing Internet poker. Nevada, however, is the only one with laws and regulations in place. Nevada's licensing process is also moving forward.
But we may not be alone for long. That's the dangerous part of the equation.
Fahrenkopf said the American Gaming Association, whose board includes a wide range of executives from casino operation, manufacturing and ancillary businesses tied to gaming, wants a federal solution to the Internet poker question. The idea calls for minimum federal standards for consumer protection and policing of under-age and problem gambling.
The problem is Washington, D.C., is in gridlock over every issue imaginable. Internet poker legalization has been pushed aside, mostly likely until 2013. The lottery industry has also weighed in on the debate, saying Internet gaming is a state matter.
"Federal legislation is necessary because if state after state around the country just goes after their own, we are going to end up with a patchwork quilt of regulations," Fahrenkopf said.
The Nevada Legislature last year directed the Gaming Commission to establish Internet poker regulations. The idea was to jump ahead of the competition, making Nevada the regulatory hub for a booming U.S. Internet poker market.
For now, that concept is on hold.
Moving forward and entering agreements with other states may require revisiting the issue during next year's legislative session.
Assembly Judiciary Chairman William Horne, the primary author of last year's Internet gaming law, AB 258, and a member of the Gaming Policy Committee, is worried Nevada could be left "flat-footed" unless it partners with other states.
"I think we need to consider teaming up with some other jurisdiction," Horne said. "Because we don't have population, we need to have those other legislators in those other jurisdictions as well helping us."
Nor does Nevada Gaming Commission Chairman Pete Bernhard want to "hang our state's future" on the possibility that Congress will act.
"We hope that there is something that provides some uniformity," Bernhard said. "But if it doesn't happen, I want us to be at the forefront and ready to move."
None of this will keep some casino operators from jumping into online poker once they receive Nevada regulatory permission.
Caesars Entertainment Corp. owns the World Series of Poker and operates pay-for-play websites under the brand throughout Europe. Fertitta Interactive plans to use its association with Ultimate Fighting Championship to launch Ultimate Poker. Bally is operating a free-play online gaming site for the Golden Nugget casinos in Las Vegas and Atlantic City. The next step is Golden Nugget's pay-to-play online poker website in Nevada.
There will be others.
Howard Stutz's Inside Gaming column appears Sundays. He can be reached at hstutz@reviewjournal.com or 702-477-3871. He blogs at lvrj.com/blogs/stutz. Follow @howardstutz on Twitter.
Trending topics:businesscasinoFahrenkopf
Delaware jumps in...getting crowded!
From Bluff Magazine 6/30/2012
THE FIGHT: Delaware Joins Nevada in Regulating Online Poker
Chris Krafcik | June 30, 2012
Big news, Bluffers: A Delaware bill authorizing the state lottery and the three racetrack casinos it regulates to offer various forms of Internet gambling, including poker, became law this week. The bill, which was approved by the Senate on Wednesday in a 14-6 vote, was quickly signed into law on Thursday by Democratic Gov. Jack Markell.
Before Wednesday’s vote, Mike Barlow, Markell’s chief legal counsel, told lawmakers: “The [bill] is a balanced way of enabling Delaware to stay at the forefront of the gaming industry while preserving the jobs we have and hopefully creating an opportunity for additional capital investment, additional employment and additional growth in our economy in this area.”
For perspective, Delaware is the third state or territory — behind Nevada and the Virgin Islands — to legalize Internet casino gaming, poker, or some combination of both; the second state — behind Illinois — to legalize sale of Internet lottery tickets; and the first state to enact Internet gambling legislation in the first session such legislation debuted.
Under the new law, the Delaware Gaming Competitiveness Act of 2012, Internet gambling will initially be offered on an intrastate basis, only. Significantly, though, the law allows for interstate Internet gambling if the lottery determines that such gambling complies both with federal law and with laws in other jurisdictions where players are located.
Poker and casino games will be available on websites branded after the state’s casinos — Delaware Park Racetrack & Slots, Dover Downs Hotel & Casino and Harrington Raceway & Casino — while lottery ticket games will be available on the lottery’s website. State officials told GamblingCompliance.com that law’s accompanying regulations could be issued as soon as January 2013.
It is not yet clear whether Nevada, where regulators are in the process of reviewing numerous Internet poker license applications, or Delaware will become the first state in American history to rake a legal hand of Internet poker. More on this to come.
Meanwhile, there was no change in the Capitol Hill Co-Sponsor Count. According to GovTrack.us, Texas Rep. Joe Barton’s Internet poker bill, HR2366, has 30 supporters, while California Rep. John Campbell’s Internet gambling bill, HR1174, remains close behind with 29.
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Here's a tax people WANT to pay!
Online Gambling Won't Solve State Debt Woes, But it Could Help
By Jennifer Booton
Published June 25, 2012
FOXBusiness
Reuters
The years-long tug of war between gambling fans and foes has been heating up since the U.S. banned online gambling in 2011, but with state debts mounting and legalization on the horizon, the so-called volunteer tax has been looking pretty appetizing.
While gambling taxes are hardly the cure for state’s daunting debt woes, they may provide new sources of revenue needed by the indebted to pay down obligations, help fund state-sponsored projects and spark job creation.
"The main political motivation for legalization of gambling is tax revenues and employment," said Doug Walker, an economics professor at the College of Charleston. "It is unlikely that online gambling will lead to significant increases in jobs, but generally, more economic activity is better than less."
The gambling sector in the U.S. is highly lucrative, and if individual states start adopting online poker, they may be able to make use of the excess cash.
The U.S. commercial casino sector (which doesn’t include Indian reserves) posted $35.64 billion in revenues last year, with the Las Vegas strip leading with annual sales of $6.07 billion and Atlantic City following with $3.32 billion.
Of the 22 states where commercial casinos operated in 2011, casinos in total contributed $7.93 billion in tax revenue to state and local governments, a 4.5% year-over-year increase, according to the American Gaming Association.
“This is a source of tax revenue that people actually want to pay.”
- Russell Fox, a principal at Clayton Financial
Gaming in Philadelphia, which has the nation’s highest tax rate on gambling profits at 48%, contributed $1.45 billion in casino tax revenues last year, while Nevada, where gambling is the state's largest source of tax revenue, followed with $866 million.
“Any form of intangible entertainment like this can have a fairly big financial impact,” said Dr. I. Nelson Rose, a professor at the Whittier Law School and gambling expert who authors a blog called Gambling and the Law.
And that's just existing brick and mortar casinos.
Randy Fine, managing director of The Fine Point Group, the largest full-service management and consulting firm in the gaming industry, said online poker would be “very additive to state budgets.”
“I’ve heard estimates of online poker being a $6 billion a year business, if a state could take a third, that’s $2 billion,” Fine said.
Gambling supporters view it as a painless volunteer tax, or one that only affects those who wish to participate. People continue to find ways to gamble online, often through illegal, unregistered web sites, so their argument is, why not regulate it?
“Almost every state with few exceptions is struggling right now,” said Russell Fox, a principal at Clayton Financial and Tax of Las Vegas, who specializes in gambling tax and operates a blog called Taxable Talk. “This is a source of tax revenue that people actually want to pay.”
Walker, who has studied the economic and social effects of gambling for 15 years, agreed, saying, "Too many critics try to argue that gambling does nothing but shift money from hand to hand ... but people enjoy the activity, so they are benefiting from it."
While legalization has its clear benefits to the player, it also helps states, as the money they make by taxing gambling profits is often reinvested into the local economy. In New York, for example, much of the tax is funneled to education, while Pennsylvania says the money goes toward property tax relief, economic development and tourism.
“They can’t cut services anymore, can’t raise taxes, so [the gambling tax] raises some money, particularly for states that are desperate,” Rose said.
This is especially true for online gambling, which, because of its digital structure, makes it easier for the Internal Revenue Service to track winnings and casino revenues.
While casinos meticulously count every chip and dollar that comes in and goes out and pay taxes on gross revenue, gambling winnings, or the player’s take, often slip under the radar.
“People who played a few days a year ignored it, especially if they didn’t get paper work,” Fox said. “But if online gambling were legal in the U.S., these people would get a 1099, and people who get paperwork tend to include it in their tax return.”
Online gambling, which took a hit last year when the U.S. banned online poker sites from operating in the U.S. -- but then caught a break in December when the U.S. Department of Justice said it would start allowing individual states to legalize online betting for casino games -- may soon pop up in states like Nevada and New Jersey.
Social media marketing company Nowsourcing, which produced a related infographic for client casino.org last week, estimated that each of the 22 states that have commercial casinos made about $1.62 billion on average in 2011 in gambling revenues. Hypothetically, if all 50 states had legalized gambling, they would have made a collective $81 billion (50 x $1.62 billion) last year, it said.
Of course, that’s not a perfect estimate, as state tax rates vary across the country and some states like Utah have long said they will never legalize any form of gambling.
It’s also just a drop in the bucket compared with the billions of dollars in state debt (California alone is $28 billion in the hole, while Illinois is out $15 billion). Rose said even the most optimistic estimates on what the federal government could raise by legalizing Internet gambling is “literally insignificant” compared with the $15.7 trillion in national debt.
"Debt is more a problem of excessive government spending," Walker said. "Until spending is limited, the ability of new tax revenues to have a significant effect on debt is limited."
They also note that while revenue, jobs and other positives on the economy are easily measurable, it’s hard to put a dollar amount on the negative impact of gambling.
Online poker would likely make it more difficult to regulate underage gambling and some argue it could help fuel gaming addictions among the so-called problem gamblers, which make up just 1% to 2% of the population, according to Walker.
Yet, those concerns haven’t stopped big casino companies like Caesars, Wynn Resorts (WYNN: 103.72, +1.71, +1.68%) and MGM Resorts International (MGM: 11.16, +0.37, +3.43%) from buying up online poker sites and online gambling licenses ahead of an expected wave of legalization in the U.S., and they certainly haven't stopped people who want to play online poker from finding ways to do so.
Wynn is also said to be in talks with Zynga (ZNGA: 5.44, +0.06, +1.12%) to create a strategic partnership that would help the casino giant capitalize on gambling and tap the social gamer's more than 230 million average monthly active users.
Many of the acquisition-hungry casinos are looking to buy companies that have never taken bets from Americans, as it remains to be seen whether banned sites like PokerStars will be invited back after they were booted last year.
However, PokerStars is a more than $1 billion business operating from the Isle of Man, a self-governing dependency of the United Kingdom located in the Irish Sea. If it were to legally relocate to the U.S. and face regulations, it would likely bring a slew of new jobs and billions in tax revenue.
U.S. regulators could take a page out of Spain’s gambling playbook ahead of the sector’s sweeping changes and allow online poker operators who previously took bets from Americans pay a back-dated tax.
While the recent move in Spain has been criticized and called desperate, the gambling companies have nevertheless started to pay up. Bwin.party digital last month said it would pay 33 euros ($41.5 million) to the Spanish Tax Ministry to meet the new regulations, while 888 paid about $9.3 million.
PokerStars is said to owe as much as $257 million.
“In Spain, they’re getting their money,” Rose said
Read more: http://www.foxbusiness.com/technology/2012/06/22/online-gambling-might-not-solve-state-debt-but-it-could-help/#ixzz1zTJ4lNZj
WOW! Zynga puts on-line poker into prospective! Do we need to pay off the national debt?
Here’s the breakdown for several of Zygna’s most popular games.
Zygna Poker:
¦Has 33.8 million active players (per month). To put this into context: Throw in 4 million more people and you have the population of California in 2010.
¦Has 61 million likes on Facebook. That’s up from 51 million likes from Inside Facebook’s Fall 2011 list of the 25 most-liked Facebook pages. The only page with more likes? Facebook itself.
¦Sees gamers play 55 million hands daily.
¦“Pays out” 16 trillion in chips daily. If each chip represents a dollar, that pays off the U.S. national debt in…less than a day, with a little more than 200 billion chips to spare.
Zynga Slingo:
¦Has seen players make 23 billion spins since its February debut.
¦Has “paid out” more than 2.2 trillion in chips.
Zynga Bingo:
¦Has seen users play 368 million bingo cards since its February debut.
¦Has had 69 million “bingos” called.
¦Has 10 million rounds of bingo played daily.
Bubble Safari:
¦Boasts of more than 6 million daily players.
¦Has seen players pop 115 billion bubbles since its May debut.
¦Has had users share more than 24 million bubbles.
¦Has had 260 million on-fire moments.
Source: Zynga
Bally leads the way! Interesting article!
From Poker News Daily 6/25/2012.
Bally Technology, IGT Granted First Nevada Online Gaming Licenses
--------------------------------------------------------------------------------
By Dan Katz - Jun 25th, 2012 ..
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Regulated online poker in Nevada is closer to becoming a reality. This past Thursday, the Nevada Gaming Commission granted licenses to two gaming companies to provide systems for online poker partners.
The rival firms, Bally Technologies and International Game Technology (IGT), were both unanimously approved for online gaming licenses. They will not be the companies that will actually run the online poker rooms (in other words, they won’t be the new U.S. versions of Full Tilt Poker or PokerStars), but rather be the ones to supply the systems to whomever will actually run the websites. Thus, it is now a waiting game for Bally and IGT, as they cannot actually do anything until casino operators are licensed to offer online poker to Nevada residents.
Both Bally CEO Richard Haddrill and IGT Executive Vice President of Emerging Businesses Robert Melendres told the Las Vegas Review-Journal that they will be ready to go the moment a casino is approved. Melendres made sure to reiterate that his company will simply be providing the gaming systems, not actually operating the poker rooms, saying, “I want to make it abundantly clear, IGT has absolutely no intention to compete with our casino partners.”
The two companies have been known entities in Nevada for years, as they are the two leading slot machine manufacturers in the gaming industry. They have plenty of experience meeting Nevada gaming regulations.
The rivals also have online poker software that has been in use for years in Europe. In February, Bally purchased Chiligaming’s (Chili Poker) business-to-business platform, while IGT bought the Entraction network last year. Thus, IGT already has experience in the real money online poker world, while Bally has been operating a play money site for Golden Nugget. Both companies will use the technology already in place in European markets to prevent underage and problem gambling once sites are up and running in Nevada.
Bally Technologies was technically the first company to have its license approved, receiving the thumbs-up 45 minutes before IGT. In a press release, Richard Haddrill said, “We are grateful to the State of Nevada for this opportunity. We look forward to Bally expanding its leadership role in this exciting new arena of online gaming.”
Similarly, Patti Hart, IGT CEO said in a press release, “This is an exciting day for interactive wager-based gaming. We are honored to be granted the opportunity to support our customers as they further expand their operations to include online play in the State of Nevada.”
Also on Thursday, the Nevada Gaming Control Board registered Gaming Laboratories International and BMM International to test interactive gaming equipment for the state. This is significant because both have labs around the world and both have tested millions of gaming systems, including those owned by Bally and IGT. Thus, any required system testing by the state should go much faster than if everything was being done from scratch with new companies. “These systems that have been written about recently have already been tested by GLI,” Gaming Laboratories International CEO James Maida told the Review-Journal. “We don’t have to retest and do the same process all over again. Our next step is to certify the equipment based on the standards set by Nevada.”
Want the latest poker news in your twitter feed? Follow PokerNewsDaily on Twitter.
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Com'on Fed...Let it happen!
From Card Player.com 6/14/2012
Nevada Casino Companies Ready for Intrastate Online Poker, But Federal Measure Still Holy GrailAGA's Frank Fahrenkopf Gives Presentation to Gaming Policy Committee
by Brian Pempus | Published: Jun 14, 2012 | E-mail Author
Gov. Brian Sandoval
The major casino companies are using Nevada as online gaming insurance. The Silver State is close to an intrastate industry, but everyone wants more.
The industry sees Nevada’s effective population (residents plus tourists) as just not enough to make web poker worthwhile. A federal bill authorizing the activity nationwide or a state-by-state patchwork are solutions to the liquidity issue.
The American Gaming Association, the industry’s top lobbying group in the Beltway, is still pushing hard for a federal bill. On Thursday in Las Vegas, Nevada, the group’s President, Frank Fahrenkopf, presented the Nevada Gaming Policy Committee with an update.
Fahrenkopf began by telling the 11-member panel, headed by Gov. Brian Sandoval, that state compacts for Internet poker might not be so easy in the absence of a federal regime. According to Fahrenkopf, the U.S. Congress has authority to approve or deny any state-to-state deal, although it historically hasn’t interfered.
“But I can assure you that with a controversial issue like this, some politicians would want to interfere,” said Fahrenkopf, who represents more than 20 casino companies.
Fahrenkopf expressed concern about lotteries overseeing intrastate markets. He said that most state lottery directors want only their lottery to have the authority to operate online gaming. According to Fahrenkopf, this monopoly would shut out commercial and tribal casinos, as well as parimutuels. He’s also skeptical of their regulatory experience. Some lawmakers in Illinois are currently thinking about allowing the lotto to run online casino games.
Two bills currently in Congress, Rep. John Campbell’s HR1174 and Rep. Joe Barton’s HR2366, appear to be drawing dead, according to Fahrenkopf. The AGA hopes a third bill will be introduced in this Congress, one that would authorize only web poker.
However, the chances of passage appear remote. “I’ve never seen this level of dysfunction in our Congress before,” said Fahrenkopf, the former Chairman of the Republican National Committee. Some federal lawmakers think gambling is “spending eternity in hell with the devil,” Fahrenkopf added. Gov. Sandoval echoed the religious allegories, calling Fahrenkopf’s presentation “enlightening.”
Frank Fahrenkopf
The less than two-hour long meeting, which was watched by about 50 people, was also a pat on the back for Nevada. Fahrenkopf said other states “aren’t even close.” Delaware, New Jersey and California are attempting to legalize web gaming.
Just last week, the Gaming Control Board approved web poker applications for Bally Technologies and International Game Technology. Both go to the Gaming Commission next week for final approval, before the technology inspection phase.
More than 30 businesses are hedging their bets by applying to participate in Nevada online poker. Gov. Sandoval said Nevada could one day be the “nerve center” for U.S. web gaming.
Despite consisting of some of gaming’s heaviest hitters, the Gaming Policy Committee doesn’t have explicit decision-making power. Its purpose is to make recommendations to the legislature. Its primary advice will be in the form of a deletion.
Assembly Bill 258, the legislation that forced the adoption of online poker regulations, has a provision that says Nevada must wait for a federal bill or DoJ authorization to begin even intrastate. The federal clarification of the Wire Act in December 2011 is widely considered to have given the intrastate OK, but Nevada wants to make sure there’s no impediment.
The Silver State will move forward, but one can say goodbye to the aforementioned language in the bill sometime after the next legislative session starts in February.
“In all due respect, Governor, I don’t think you’re going to get a [DoJ] letter saying you can do whatever you want,” Commission Chairman Peter Bernhard said as the meeting was ending.
“Why not?!” Gov. Sandoval joked.
Here's a nice update for on-line poker!
From Ante Up 6/17/2012
More movement for online poker legislation
June 19, 2012, Chris
By Joel Gatlin
Wow, what a busy time for the online poker scene. The activity is almost bursting at the seams with new developments from coast to coast. Let’s focus on states making progress and putting plans in place to get online poker running as fast as possible (or as fast as government can go).
Nevada: In early June, Nevada’s Gaming Control Board issued its first online poker license to Bally Technologies. After paying the licensing fee of $125K, the only remaining hurdle is getting the stamp of approval from the Nevada Gaming Commission, which should happen by the time you’re reading this.
Other companies, such as International Game Technology and Bwin.party, have also applied for licenses, which will be reviewed and decided soon. Nevada’s Gaming Control Board chairman Mark Lipparelli said the first online poker game by any licensed provider would probably be in six to eight months. This means by the end of the year the virtual cards could be flying for residents and visitors of Nevada.
Illinois: In May, Senate president John Cullerton introduced legislation in the form of a bill that would create a new Division of Internet Gaming inside the Illinois Lottery. With a population nearing 13 million, the estimated revenues, should this bill get passed, are in the hundreds of millions of dollars for the state. Cullerton was hoping to get the bill brought up for a vote in the current session of the General Assembly, but it died. It wasn’t able to meet the procedural deadline of May 31, so it will have to wait until the next session to be addressed again. I will keep you updated on all developments when the next session convenes.
California: While there has been some questioning of whether California and Nevada would partner to for an interstate online poker arrangement, California lawmakers have put that to bed, saying their state isn’t planning on it. The bill on the state’s legislative floor was pulled from the docket in mid June due to continued opposition from several tribal organizations. Even after altering the bill to address the concerns of the tribal groups, there were still not enough votes to pass it. State Sen. Roderick Wright said there was less than a 50-50 chance at getting it passed this session (by Aug. 31), but they would keep trying. I also mentioned last month that Bwin.party Digital Entertainment group had partnered with the United Auburn Indian Community. Well, Bwin.party is hedging its online bets by also filing for a license to operate in Nevada.
Delaware: As reported last month, the Delaware Gaming Competitiveness Act of 2012 was introduced to lawmakers in May. A new twist has come up with this bill. Delaware is supposedly trying to align with West Virginia and Rhode Island to create a three-way interstate partnership. It’s unknown whether the DOJ would approve such a deal. The bill has passed the House and has the governor’s support.
New Jersey: It seems as though the good folks from Jersey are back on their roller-coaster ride waiting for Gov. Chris Christie to endorse the New Jersey Internet Gaming Bill. Sen. Raymond Lesniak tried to get enough members of the Senate to pass the bill by May 31, but failed to because Christie is saying he doesn’t want this issue addressed before the fall, likely because he is a potential running mate of Republican presidential candidate Mitt Romney. Also, Sheldon Adelson, CEO of Las Vegas Sands, is a potential large contributor for the Romney campaign and has made it known he’s against any online poker legislation. So, Christie is playing it politically safe and putting off signing this bill until all of the campaigning and politicking is done.
Colorado: The state’s gaming association has put together a bill that would legalize online gaming. Though the executive director, Lois Rice, has said there are no scheduled plans for introducing anything into the state Senate, it appears there has been some serious thought put to the matter. The bill is supposedly modeled after the New Jersey bill.
PokerStars-Full Tilt on the skids? With the Spanish government seeking back taxes from all online gaming companies doing business within its borders, PokerStars could owe more than $250 million if it wants to continue to have access to that country’s lucrative online population. This could prove to be a large and unforeseen financial expense and could affect PokerStars’ decision to pay $750 million to acquire Full Tilt’s assets and pay back U.S. players. More to come on this as it develops.
FACE UP GAMING INKS McEVOY: Face Up Gaming (faceupgaming.com), a subscription-based online poker room, recently hired Tom McEvoy, former WSOP main event champ as a spokesman. Said McEvoy: “Until we have legalized Internet poker where people can play cash games, Face Up Gaming offers a state-of-the-art, legal and innovative subscription site where poker players can win big prizes, including cash.”
— Email Joel Gatlin at editor@anteupmagazine.com.
Thank You, George.
Delaware says "YES" to online gambling.
Delaware Online Gaming Bill Passes HouseVoted out by margin of 29-8
by Brian Pempus | Published: Jun 13, 2012 | E-mail Author from CardPlayer.com
A bill in Delaware that would legalize online table games, including poker, and expand other forms of gambling in the state passed the House Tuesday evening.
Twenty nine voted in favor and eight voted against. The bill underwent two amendments this week.
The Delaware Gaming Competitiveness Act of 2012 would authorize Internet gaming under the control and operation of the Delaware Lottery. The state is looking to partner with West Virgina and Rhode Island in offering online poker.
The Delaware governor’s office told Card Player in March that it would take up online gaming in an effort to keep its gaming industry competitive in the region.
According to Bluff magazine:
THE FIGHT: Conservative Lobby Groups Push Back, Zynga Begins to Lobby
Lance Bradley | June 8, 2012
THE FIGHT, presented by Chris Krafcik, brings you the latest headlines and insight from the attempts to regulate online poker in the United States.
For the second time in recent weeks, moral-conservative groups have urged Congress to crack down on state efforts to legalize Internet gambling, including poker. In a jointly written letter publicized Wednesday, groups from 13 states, including the Pennsylvania Family Council, said that any tax-revenue benefits states hope to derive from Internet gambling will be outweighed by the societal cost of its continued expansion. According to the Associated Press, which broke the story, the groups also pressed federal lawmakers to strengthen the Unlawful Internet Gambling Enforcement Act of 2006 “to ensure its clear intent that the Internet not become a giant online casino.”
In Nevada, meanwhile, intrastate Internet poker is inching closer to realization. This week, the Nevada Gaming Control Board, which is tasked with investigating Internet poker license applicants, recommended that its sister body, the Nevada Gaming Control Board, license two poker platform providers: International Game Technology and Bally Technologies. The Control Board has yet to hear license applications for Caesars Entertainment, which owns the World Series of Poker franchise, and Wynn Resorts, which abandoned its partnership agreement with the world’s largest Internet poker business, PokerStars, last year. Nevada regulators have not disclosed when they will permit state-licensed business to deal their first virtual hands.
The Illinois Internet gambling bill, HB4148, has been tabled, according to information officers in the state Legislature. However, the bill may be taken up again during this year’s veto session, which runs for six days in late November and early December. Around the country, meantime, Internet gambling legislation is still pending in California, Delaware and New Jersey. A hearing on the California bill, SB1463, which was this week amended to authorize Internet poker, only, will be heard next Tuesday in the Senate Governmental Organization Committee.
Zynga, operator of Zynga Poker, which has more daily active users than any other Facebook game, made headlines this week when news broke that it had hired Bay Bridge Strategies to lobby on its behalf in Washington, D.C. In its most recent set of quarterly results, the company said it is exploring a move into real-money Internet poker. If Zynga begins lobbying federal Internet gambling legislation, it will become the 69th business to declare Internet gambling lobbying expenses in 2012, according to GamblingCompliance.com
Once again, there was no change in the Capitol Hill Co-Sponsor Count. According to GovTrack.us, Texas Rep. Joe Barton’s Internet poker bill, HR2366, has 30 supporters, while California Rep. John Campbell’s Internet gambling bill, HR1174, remains close behind with 29.
Random quote of the week: “What I’d really like to do is something extraordinary. Something big. Something mega. Something copious. Something capacious. Something cajunga! But I’ll probably end up working at Great America, mopping up hurl and lung butter.” —Wayne Campbell, Wayne’s World 2 (c. 1993)
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Step one....a major step forward in Nevada.
From PoketFives.com Looks like early 2013 for on-line gambling.
Bally, IGT, William Hill Recommended for Nevada Online Poker Licenses[ return to main articles page ] ..By: Dan
Published on Jun 8th, 2012
Email A Friend According to various Las Vegas news outlets, the process of granting intrastate online poker licenses in Nevada was pushed further along this week when the Gaming Control Board recommended that several companies become operators. The first license announced went to Bally Technologies and, according to the Las Vegas Review-Journal, "The hour-long hearing in Carson City marked the first time since Nevada gaming authorities approved regulations covering interactive gaming - online poker within the state's borders - that a company was considered for licensing."
The Nevada Gaming Commission will now take up the issue on June 21, according to the same Las Vegas newspaper and a Bally Technologies press release. If you're not familiar with Bally Technologies, the company has nothing to do with Bally's casino or the fitness brand of the same name. Instead, Bally has been a staple of the gaming industry for the last 80 years.
Bally Technologies CEO Richard Haddrill was proud to receive the historic gaming license: "This is a historic day for Bally Technologies, for Nevada, and for the gaming industry. We are very grateful for the Board’s recommendation and are excited about being the first company recommended by a U.S. state for licensing to offer online gaming products and services."
If approved, Bally plans to offer its gaming technology to casino operators and thus function in more of a business-to-business capacity rather than business-to-consumer. Bally Technologies recently purchased Chili Gaming's business-to-business arm and teamed up with with Aristocrat Technologies ahead of the U.S. internet gambling market taking shape. Chili Gaming had previously partnered with the Golden Nugget for a free play online poker site.
A Bally Technologies executive commented at the time of the Chili Gaming transaction why the company was appealing: "This acquisition provides an open, cloud-based platform for Bally Technologies to offer an integrated traditional and online casino solution to operators worldwide. Equally as important, Bally Technologies has also obtained an experienced team of industry veterans from within the online gaming industry, which will help our customers optimize their use of this platform."
Nevada regulators also endorsed William Hill for an online poker license. The publicly traded company operates an online poker site on the iPoker Network and, according to the Las Vegas Review-Journal, William Hill's license would allow it to "operate three race and sports book companies as well as mobile wagering apps in Nevada."
The newspaper added that William Hill has already purchased American Wagering, Brandywine Bookmaking, and Club Cal Neva Satellite Race and Sports Book, which are all entrenched in the sports betting industry. Its total purchase price for all three companies exceeded $50 million.
According to the Review-Journal, William Hill plans to "consolidate all three companies, 164 sports books and kiosks, and online and mobile operations under the William Hill brand."
One of the questions William Hill faced in Nevada was its relationship with Playtech, which owns and operates the iPoker Network. The Review-Journal shared, "William Hill owns 71% of the online business, while Playtech holds a 29% stake… Their agreement gave William Hill the opportunity in December and again in 2014 to buy out Playtech's stake in the company."
Also getting the green light to offer online poker games in Nevada pending approval from the Nevada Gaming Commission was International Game Technology, or IGT. You'll recall that IGT recently purchased the Entraction Network, which could get it into hot water with Nevada authorities.
To that end, the Las Vegas Sun explained, "Entraction had been illegally accepting wagers from the United States. IGT said it investigated the background of Entraction before the purchase, but did not uncover the U.S. betting. It was stopped and it was determined it was less than 1% of the Entraction business… IGT is working with the Federal Department of Justice to resolve if there will be any penalty."
Other licensees should be announced soon. When legal online poker games will launch in Nevada remains to be seen. Initial estimates were the end of 2012, although PocketFives has heard rumblings that games could be rolled out in early 2013.
I'd add my 2 cents. But, I'm BROKE!
Wynn is BIG! Is it not?
Wynn Applies for Nevada Online Poker LicenseJoins Caesars, MGM in Gearing Up for Real-Money Web Gaming
by Brian Pempus | Published: Jun 11, 2012 | E-mail Author
Wynn Las Vegas
Wynn Resorts Ltd. (NASDAQ: WYNN), one of Nevada’s largest casino companies, has submitted an application to operate online poker in the Silver State, according to the Nevada Gaming Control Board. Wynn is one of the latest to apply as the state inches closer to the first industry of its kind in U.S. gaming history.
Wynn expressed interest in online poker more than a year ago when it agreed to a partnership with PokerStars. The deal dissolved after the poker site fell into hot water with the federal government.
Wynn is now in talks with Zynga, Inc., Facebook, Inc.’s social gaming powerhouse, Forbes reported in late April of this year. Zynga has not applied for a license in Nevada.
Caesars Entertainment Corp. and MGM Resorts International, other Nevada brick-and-mortar giants, have had their respective paperwork in for months. Both companies already have partnerships with established poker sites that will be licensed to offer technology to casinos.
Joining Wynn in the most recent batch of applications from companies seeking to be involved with web poker include LV Gaming Ventures, LLC (M Resort), Z4 Poker, LLC (David and Eric Colvin), SG Gaming, Inc., WHG Ltd. (Playtech), Global Cash Access and Wyle Laboratories.
The list is now at more than 30 entities.
Just last week, the Gaming Control Board broke ground by approving Internet gaming applications for Bally Technologies, Inc. and International Game Technology. The companies head to the Gaming Commission
Increase your math skills?
Once a week, a small group of students gathers in the guidance counselor's office at their Lower East Side high school for a meeting of the lofty-sounding Mathematic Operations, Psychology & Philosophy Through Tournament Card Play club.
They tend to use a more informal name: poker.
A game that conjures images of dim back rooms, rattling chips and smoky haze would seem to be an unorthodox extracurricular activity at any public school, especially a struggling one nestled beside a swath of housing projects.
Most schools offer extracurricular activities like sports and drama. But this high school in Manhattan offers something unusual: poker. Photo: Philip Montgomery
.But at the Henry Street School for International Studies, poker is a rare bright spot. The past three valedictorians have all been members of the club, which plays weekly tournaments of No-Limit Texas hold 'em. In 2008, the students traveled to Harvard University to challenge a team at the law school—and won. Later that year they were invited to represent the U.S. in a tournament at Oxford University, but they couldn't raise the funds in time.
The club's success has cheered poker fans who would like to see the game recognized as a test of skill and strategy, much like chess. The United States Poker Federation is trying to strip the game of its seedier associations and reposition it as one of the world's official "mind sports."
"Poker has been lumped in with some nefarious behavior because of the way it's been played. But if you take money out of it and look at it on a skill level, what makes somebody a good poker player we think can translate to other areas of cognitive learning," said Amy Handelsman, executive director of the federation and the United States Mind Sports Association.
Enlarge Image
ClosePhilip Montgomery for The Wall Street Journal
Maurice Engler was a guidance counselor at the Henry Street School.
.It is a vision embraced by the club's founder, Maurice Engler, a former guidance counselor at the school who said he dreams of creating a network of poker teams across the city to akin to what's in place for chess. But he knows the deck is stacked against him.
After Mr. Engler left the Henry Street School last year, he tried to start a club at his new place of work, another high school in Manhattan. The principal shut down the club midyear, he said.
"He tried it and just could not get behind it," Mr. Engler said.
The Henry Street team, which currently has eight to 10 members, is the only sanctioned high school poker club in the city, he said.
Mr. Engler started the club in 2007 after realizing that poker was an effective way to reach some children, as well as a novel approach to math and psychology.
He started meeting with students every week with a few firm rules: No cursing. No money exchanged. No innuendo.
He began each session with a mini-tutorial on probability, the dangers of gambling or Zen philosophy, which the students quickly dubbed the "hippie lessons." After Mr. Engler left, the club continued.
Malachi Riddick, now 18 years old, began playing poker with Mr. Engler in middle school as a way to overcome shyness during their counseling sessions, he recalled.
Although he was a founding member of the club, he spent a year on "tilt"—thrown off his game by the teasing of other players, he said. At one point, he even considered quitting. But instead, he schooled himself in self-control.
"Poker is learning experience—you win some, you lose some," he said.
At the Harvard competition, he finished second in the tournament to a teammate, beating every law school player. Although Mr. Riddick graduated last year, he said he still carries the club's lessons with him.
"Every decision I make, as simple as, you know, if I stay out too late, if I want to argue with my mom, I think, 'Is this the right thing to do?'" said Mr. Riddick, who is working this year and applying to college. "Just like with cards: 'Is this the right bet? What are the chances of that happening?' It's deeper than just the cards."
Still, anti-gambling groups warn that the risks of such clubs might outweigh the benefits.
"I think for the vast majority of kids it can be very good education and these are great skills to teach but it comes at a cost," said Keith Whyte, the executive director of the National Council on Problem Gambling.
He noted that 4% to 6% of children become addicted to gambling, and that it has been linked with other high-risk behaviors, including drug use.
"You need to be very careful when you're potentially triggering that pleasure/reward addictive pathway," he said. "We're not saying it should be prohibited. But we're saying there must be comprehensive responsible gaming and problem gambling education if you're using it as a teaching tool."
Erin McMahon, the principal at the Henry Street School, said she initially shared similar concerns. Last year 88% of students there qualified for free lunch, and the high school received a C on its most recent report card, according to Department of Education data.
But her doubts were dispelled after visiting the club one afternoon, she said.
"You walked into this and you felt the level of intensity and focus I hadn't seen anywhere in my building before that," she said. "I said, 'There's something going right there.'"
The Harvard trip confirmed her instincts, she said.
"You want to raise the bar so that kids have a new understanding of what's possible, and I think this experience has raised that bar," she said. "The risk has been worth the reward."
The game has earned some high-profile supporters. Charles Nesson, the Harvard Law School professor who led the team that lost to the Henry Street School students, has become a leading proponent for poker in the classroom.
He is now a board member of the United States Poker Federation and is planning to teach a class next year that incorporates poker training alongside case law.
"Poker's all about who your adversary is and how much of your credibility you risk," he said. "The metaphors of poker are vibrant in the context of legal adversarial action."
Students said it helped in daily life, too, enabling them to read people by detecting the slight hesitation or rapid blinking that signals a bluff. It has steadied their emotions, leaving them less susceptible to outside pressures. And for some, it introduced a new respect for a subject they had dismissed: math.
"I never really liked math but that's the thing that impressed me: Poker has a lot to with math," said senior Nateam Karim, the lone female member of the club. "Poker has taught me that math is actually very useful."
The 17-year-old said she plans to enroll in CUNY next year and major in psychology, an interest she also credits to poker.
After watching her teammates bluff, fold and occasionally fume, she said, "I wanted to understand how the human brain works and why people do certain things."
Write to Sophia Hollander at sophia.hollander@wsj.com
My post is positive. See this!
Myspace Co-Founder Dabbles in Online PokerTom Anderson Involved with Facebook-Based Gambling Platform
by Brian Pempus | Published: May 23, 2012 | E-mail Author
Tom Anderson
Iconic Myspace co-founder Tom Anderson is involved with social gambling startup RocketFrog, which launched a Facebook app Monday. The company is the latest to see potential opportunity from casino-style games on the social networking giant.
The free-play platform runs poker, blackjack, slots and roulette. It already has 9,000 “monthly users” vying for “real world prizes.” For now, Los Angeles-based RocketFrog will look to scoop up advertising dollars from a wide range of industries.
While Anderson, who left MySpace in 2009, serves as an adviser, the company is led by an executive team consisting of Brett Calapp, Matt Osborn and Uri Kozai. Reality-TV star Brody Jenner is also behind the project.
Calapp has previous experience in casino-style gaming. He co-founded Centaurus Games — a subscription-based network of poker players — before eventually selling his company to then PartyGaming. He was also once at the helm of the Ultimate Blackjack Tour.
Jenner, brother to Kim Kardashian, told The Hollywood Reporter that RocketFrog could be used to promote Kardashian products.
“I could see my sister Kim doing a promotion through us and it would help build more business for them,” he said. “We could do a promotion where we gave away perfumes or whatever through our tournaments, and it’s a win-win for our site and for their products.”
With 14.7 million followers on social media site Twitter, Kim Kardashian could soon become a marketing force in the online gambling world.
Other entities such as Zynga Inc, brick-and-mortar powerhouse Caesars Entertainment Corp. and real-life slot manufacturer International Game Technology (IGT) have already bought into the future of Facebook’s reach in the gambling realm.
Traditional real-money gambling on Facebook does not exist, and it might never will, but the site does authorize the purchase of virtual goods and services. Zynga gives Facebook a 30-percent cut of its sales.
Stand-alone poker sites, ones that would facilitate real-money deposits and withdraws, are quickly approaching at the state level in the U.S. Nevada is the only jurisdiction where the activity is legal. The industry could kick off there this December.
Other states, including California, New Jersey and Delaware, are also actively pursuing regulated gambling on the Internet, but don’t have laws yet in place.
Have you heard the results of this?
Home : Poker News : Online Poker Licenses on Nevada Regulatory Agenda
Online Poker Licenses on Nevada Regulatory AgendaBally Technologies and IGT to Have Applications Considered Next Week
by Brian Pempus | Published: Jun 01, 2012 | E-mail Author
Online poker in Nevada will be one step closer to reality this upcoming week.
The Nevada Gaming Control Board has released an agenda for its June 6 and 7 meetings, and Bally Technologies, Inc. and International Game Technology will have their respective licensure applications for online gaming considered. If approved, they would go to the Gaming Commission.
Both companies are looking to manufacture, run and maintain online gaming systems. They would need to partner with a brick-and-mortar casino in order to do business. According to IGT’s website, the company is actively looking for such relationships.
Bally Technologies currently offers a large selection of Internet-based games, including a $1.99 slot machine application for Apple products.
IGT entered the social gaming arena when it made an aggressive $500 million purchase of Double Down Interactive. DoubleDown Casino recently launched a free-play hold’em game on Facebook.
The company also purchased an online poker network for $115 million about a year ago.
Twenty five entities have so far sent applications to regulators. Bally Technologies and IGT were two of the early birds, each submitting their paper work in October 2011.
Although Nevada gaming companies could eventually offer a wide array of casino games through cyberspace, the Silver State regulators have elected to allow only poker at first.
If successful, Bally Technologies and IGT could be the first companies ever to obtain a license to offer online poker in a U.S. state. Nevada effectively legalized intrastate poker last summer.
While the legislation says that a Nevada license can’t offer the games until there’s a federal bill or the Department of Justice gives its OK, a federal legal clarification in December 2011 is widely considered to have put the activity, as long as it’s done intrastate, in the free and clear.
In mid May, Control Board Chairman Mark Lipparelli gave a time frame of seven to 10 months for poker games to be up and running. Nevada could be online before 2013.
News? How about "Money Talks!"
Will Broke California Legalize Online Poker or Sports Betting?
May 31, 2012 - 11:45am
by Paul ‘Dr. Pauly’ McGuire
California is broke and struggling to pay its bills on time. Many of its politicians would rather “kick the can down the road” than risk losing their foothold on power by introducing unpopular legislation, cutting back services, or raising taxes. But right now, a few politicians are turning to gambling to help solve a colossal $9 billion budget deficit. After all, at the height of the poker boom, it was estimated that more than 2 million California residents played online poker, wagering over $13 billion annually.
In February, California State Senate President, Darrell Steinberg, introduced SB 1463, also known as The Internet Gambling Consumer Protection and Public-Private Partnership Act of 2012. The bill would permit California to issue 10-year licenses to tribal casinos, card rooms, and race tracks for the sole purpose of running an online poker room. The state would get a 10 percent cut from total gross revenue, and players would be responsible for paying taxes on their earnings. After two years, other online games—presumably table games like black jack and roulette—could be introduced.
The California Online Poker Association (COPA) is a coalition comprising 60 card rooms and tribal casinos. They banded together in a unified front to call for the legalization and regulation of online poker. COPA recently created a free online poker site called CalSharks.com.
Even though you can legally place wagers on horse racing via phone or through the internet, the once-powerful industry is struggling to attract new gamblers to their antiquated sport. Horse racing’s future looks grim, as their main audience is slowly dying off. Online poker would make up for the vast decline in horse betting revenue. However, many members of COPA don’t want the horse folks to be eligible for an online poker license. COPA and California’s other major gaming interests are also concerned about the growing power of social media gaming giant, Zynga, and their popular game, Zynga Poker, which has almost 40 million monthly users. Zygna is eying the real money market, and COPA members see them as a significant threat. Unemployment in California is hovering around 12 percent, and that doesn’t include the significant amount of citizens who are under-employed. According to COPA’s estimates, online poker will create approximately 1,300 jobs and generate $1.4 billion in revenue without raising taxes.
In addition to online poker, California is also eying the lucrative sports betting market. Senator Wright introduced SB 1390, which would allow tribal casinos, racetracks, and card rooms to accept sports bets . Sports betting is banned on the federal level under the Professional and Amateur Sports Protection Act of 1992. However, an exception exists for four states: Nevada, Delaware, Montana, and Oregon. Currently, eight other cashstrapped states are fighting the federal ban. Earlier this year, New Jersey’s Governor Chris Christie signed a bill that would allow sports betting at Atlantic City casinos and race tracks However, that is all dependent upon the ban being overturned by the feds.
Proponents of California sports betting are hoping its residents will bet locally instead of driving to Las Vegas or Reno to place wagers on big events like the Super Bowl and March Madness. Legalized sports betting could generate almost $1 billion a year in revenue. The state would finally get a cut of the billions of dollars that flows through illegal bookmaking operations and online sports books located in the Caribbean and Costa Rica.
The future is uncertain, but one thing remains constant: California is in a huge hole and it’s only getting bigger. They need to do something fast. But which short cut will they take? Online poker or sports betting? How about both?
Paul McGuire is the author of “Lost Vegas”, which you can find at www.lostvegasbook.com. You can read his poker blog, Tao of Poker, over at www.taopoker.com.
Down under can do it? Why not us?
Plan to expand online betting May 30, 2012
Read later.
Competing in online poker tournaments may be made more readily available in Australia.
AUSTRALIANS could get access to legal online poker tournaments and a wider choice of online sports betting options under proposals to liberalise the internet gambling sector.
Under the proposals, contained in an interim report to the federal government, live in-play sports betting on the net — allowing people to punt on an event while it is in progress — could become legal.
But micro-betting — such as ball-by-ball bets in cricket — would be banned online.
Advertisement: Story continues below Releasing the proposals yesterday, Communications Minister Stephen Conroy stressed it was interim report only and the government had made no decisions.
But Senator Conroy and sports betting agencies pointed out that Australians were already sending about $1 billion a year offshore via illegal sites, and argued that regulating the domestic industry could help protect punters.
Two years ago the government said it did not support the liberalisation of online gaming, including online poker, as recommended by the Productivity Commission.
The new proposals include harm minimisation standards, such as self-exclusion from websites, pre-commitment and the provision of easily accessible data telling punters how much they are spending.
Once the standards are finalised, a trial of online poker is recommended, with sites to be given licences on the condition they do not offer other casino style online games, which would remain illegal.
In-play betting — punting on a game while it is in progress — is currently legal via phone or in person. The report recommends extending this to the internet.
Micro-bets — bets made on frequently occurring events within a game such as a tennis serve or the bowling of a cricket ball — would be banned online, and states would be encouraged to ban them at physical betting outlets too.
The report also proposed:
¦ Linking online gaming laws and match-fixing laws.
¦ Australian Federal Police action against websites offering illegal games, including placing directors on a migration alert list.
¦ Appointing the Australian Communications and Media Authority to oversee online gambling and civil penalties. These could include shutting down websites.
¦ Holding company directors liable for running banned gambling services
¦ Requiring internet service providers to issue warnings when their customers click onto illegal sites.
The report also calls for investigation into proposals to protect financial institutions that block transactions between consumers and unlicensed gaming websites.
The proposals were welcomed by betting agencies and sporting bodies, but blasted by gambling critics.
Tim Costello, of the Interchurch Gambling Taskforce, said he was against further liberalisation of online gambling because Australia already had the highest rate of problem gambling in the world.
"The more accessibility, the greater number of problem gamblers and social pain, particularly in young men," Mr Costello said. "If you gamble on shonk sites overseas and lose your money you never try again, it’s a natural protection."
Monash University's Charles Livingstone said there was a great opportunity to implement meaningful reform and introduce effective harm minimisation. "But it looks to me like they are trying to push it without first bedding down what good harm minimisation would actually look like," he told The Age.
Independent Senator Nick Xenophon said the proposals were a "thinly disguised sell-out to expose more Australians to online gambling". He said the argument that new forms of online gambling should be legalised because Australians are using illegal overseas sites was "deeply flawed".
AFL media manager Patrick Keane said the league welcomed greater regulation of online betting in Australia. He said all betting on Australian websites was regulated and had information sharing and other arrangements, which helped combat illegal behaviour.
"At the moment the restrictions in online betting encourage people to use overseas-based s
Read more: http://www.smh.com.au/opinion/political-news/plan-to-expand-online-betting-20120529-1zhme.html#ixzz1wpkjhebS
Lots of on-line poker stocks mentioned here.
Vegas Eyes Big Legal Online Poker Bet — Facebook Too?
By BRIAN DEAGON BRIAN DEAGON 12655 Beatrice Street
Los Angeles
CA
90066
USA
Posted 05/24/2012 06:56 PM ET
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inShare.Online gambling may soon be legal in over a dozen states, and everyone from governors, global casino giants and maybe even Facebook wants a piece of the action.
Months after shutting down major websites such as FullTilt Poker and PokerStars, the Justice Department said on Dec. 23 it would not interfere with states legalizing web-based poker and other gambling. Online sports betting would not be legal.
California, Nevada, New Jersey and about 10 other states are looking to raise revenue by legalizing and taxing online gambling .
Casino industry representatives play in a mock online tournament during the G2E gaming conference in Las Vegas on Oct. 4, 2011. Casino giants such as... View Enlarged Image
"It is going to occur. They need the revenue," said Richard Bronson, chairman of U.S. Digital Gaming, which helps states implement legal gambling.
Casino giants such as Wynn Resorts (WYNN), MGM Resorts (MGM) and Caesars Entertainment (CZR) have been laying plans and acquiring companies to ante up online.
"When you have a gold mine this big it's only a matter of time," said Brock Pierce, managing director of the Global Gaming Fund of venture capital firm Clearstone Venture Partners. "A lot of billion-dollar companies will come out of this in the coming years."
In December, Caesars acquired Israel-based mobile gaming firm Playtika for an estimated $220 million. Slot machine giant International Game Technology (IGT) in January paid $500 million for Seattle's DoubleDown Interactive, which makes casino-style games for social networking sites including Facebook (FB).
So far Las Vegas Sands (LVS) has not signaled its intentions.
Bronson expects legal gaming sites in 2013. Nevada has already passed legislation authorizing online gaming. Technical issues are still to be resolved but sites could come online as early as Q1.
California legislators have worked on bills for about a year, though it's anyone's bet when legislation might land on Gov. Jerry Brown's desk. But state tax revenue for just online poker could top $5 billion in 10 years, estimates U.S. Digital Gaming. If gaming platforms were linked to social sites like Facebook (FB) and Zynga (ZNGA), revenue could nearly double to $9 billion.
It's unclear what role federal regulators might play. Absent congressional action, legalization might happen state by state, each with their own set of rules.
Last October MGM and Boyd Gaming (BYD) announced a joint alliance with U.K.-based online poker giant Bwin.party, owner of PartyPoker, one of the biggest online poker sites in Europe.
Caesars CEO Gary Loveman, in a May 1 earnings call, said legal online gambling continues to grow in the U.K., Italy and France.
Good logic, Easy. Hope it all works out for us. Neal
The white House says what?
See if you can tell from their response, exactly what their position is?
Poker players who signed an online petition about online poker in the United States this week received a response from the White House on the issue this week.
In a response titled “What We Have to Say About Online Poker,” Brian Deese, Deputy Director of the National Economic Council, outlines the position of the administration of President Barack Obama on online poker.
The response is what many expected in an election year in the U.S. — keeping doors open for legislation that would regulate online poker, but stopping short of endorsing any such legislation.
The response appears below:
Thank you for taking the time to participate in the “We the People” petition process. We launched this online tool as a way of hearing directly from you, and are pleased to see that it has been effective in soliciting your feedback. We understand your interest in the petition to support the legalization of online poker, and appreciate the opportunity to share President Obama’s concerns about this issue.
The Administration understands that many Americans engage in paid online poker games for entertainment purposes. Online gambling on sporting events or contests violates federal law. The legality of other forms of online gambling is dependent upon the law of the states where the bettor or gambling business is located. It is left to each state to determine whether it wishes to permit such activity between its residents and an online poker business authorized by that state to accept such wagers, but online gambling that is not authorized by state law may also violate federal statutes.
The rapid and anonymous nature of the internet distinguishes online games from onsite games, such as those in casinos, and creates distinct challenges. For example, there are many means of technologically circumventing restrictions on online gambling that can allow individuals from countries where gambling is illegal — or even minors — to play using real currency. Online games also have greater potential for fraud because gambling websites are much cheaper and easier to establish than on-site locations, and like telemarketing scams, can appear and disappear overnight. Finally, online gambling can be used in money laundering schemes because of the volume, speed, anonymity, and international reach made possible by internet transactions. The Administration will continue to examine this issue and is open to solutions that would help guard against the use of online gambling sites as tools for conducting illegal activities or preying on unsuspecting individuals to the extent that online gambling is permitted.
Thank you once again for signing the online petition. We appreciate hearing your opinions and look forward to hearing from you again soon.
In the “We The People” petition process, only issues that received a base level of support received responses from the administration, so online poker made the cut in that respect.
This is interesting! 5/17 from Indian Country Today Media Network.
Considerations for Indian Tribes Seeking to Conduct Intrastate Internet Gaming
By Joseph H. Webster
May 17, 2012
RSS Read More:IGRAIndian Gaming Regulatory ActJoseph H. WebsterU.S. Department of the InteriorWire Act
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Submit this story With federal internet gaming legislation apparently unlikely in the near future, many Indian tribal governments are considering the prospect of conducting intrastate internet gaming. The Justice Department widened the opening for intrastate internet gaming last December when it issued an opinion that the Federal Wire Act only applies to sports wagering and thus does not bar state lotteries from selling lottery tickets online. Tribal leaders in a number of jurisdictions are actively talking with state officials about how to structure legislation or other agreements that would allow tribes to offer internet gaming to state residents located beyond Indian lands. As discussions in various states move forward, there are a number of threshold issues for tribal leaders to consider.
First, even intrastate internet gaming is likely to involve a combination of tribal, state and federal law. The Indian Gaming Regulatory Act (IGRA) governs gaming that takes place on Indian lands. If any aspect of the internet gaming (e.g. prize, chance or consideration) occurs on Indian lands, then IGRA may apply. If it does apply, then federal requirements, including sole proprietary interest limitations, Class II technical standards and the requirement for approval of management contracts would need to be considered. Similarly, tribal gaming ordinance requirements could be implicated. Any state law or agreement would need to be structured to respect these requirements of federal and tribal law.
Second, the class of game to be offered is critical to the regulatory approval process. If the game is Class III, then a compact or compact amendment could be necessary to authorize the game to be hosted on Indian lands. A compact or compact amendment would require review and approval by the Interior Department. In contrast, if the game is Class II (such as bingo and poker in most states), then it may be possible to offer the game without any further federal action or approval. However, it would be critical to ensure that the game actually has Class II status and that it is conducted in conformance with all applicable Class II requirements.
Third, the role of tribal regulators cannot be ignored. While some states may want to have an exclusive role with respect to licensing and regulating intrastate internet gaming, tribal regulators have jurisdiction to the extent that the gaming takes place on Indian lands. Tribes may choose to enter into a cooperative regulatory relationship with state regulators (as is the case under many tribal-state compacts), but states do not have the power to unilaterally exclude tribal regulators from the process.
Fourth, if tribes are paying for exclusivity or substantial exclusivity to offer games via the internet that are hosted on Indian lands, then those payments must be consistent with federal law. As noted above, some agreements may require a tribal-state compact, in which case the Interior Department would be required to approve the payments. However, even if the agreement does not require federal approval (for example, if the game is Class II), the agreement may still need to comply with IGRA’s sole proprietary interest requirement.
Finally, the true level of competition that a tribe will face (both to its online and brick-and-mortar gaming) if non-tribal entities are permitted to offer internet gaming must be evaluated. For instance, an internet gaming bill that fails to clearly and completely prohibit internet gaming parlors could have a significant negative impact on the revenue from a tribe’s brick-and-mortar casino operations. Further, if a bill allows Las Vegas gaming interests to participate as licensees or as major vendors to local licensees, then it could be very difficult for a tribe with a small or even moderate size gaming operation to compete online.
While the above list is not exclusive, it serves to demonstrate the range of issues that tribal leaders should consider as they begin discussions with state officials about possible arrangements to permit intrastate internet gaming. While entering into arrangements for tribal participation in this important new market could prove very beneficial and have a significant impact on tribal economies for years to come, the manner in which these legal issues are addressed will play an important and necessary part in whether or not these efforts are successful.
Joseph H. Webster is a partner with the law firm of Hobbs, Straus, Dean & Walker, LLP in Washington, D.C.
Notice reference to "Indian casino's"!
5/17 WebProNews
Online Gambling Legalization Getting Closer To Reality
More and more states are considering it
By Richard Stalker · May 17, 2012 · 4 Comments
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inShare.4 It looks as though the proverbial floodgates are about to be opened in the online gambling debate. Nevada has already passed a law and New Jersey is likely to follow soon, according to Pillsbury lawyer Jim Gatto. He adds that Hawaii and California are also considering bills to legalize online gambling.
Up until last year, online betting was considered illegal. Then the Department of Justice issued a memo green lighting it with some restrictions. The state has to allow it, the betting takes place within state borders, and no sports betting is involved. If all 3 of those criteria are met, then it is A-OK!
This is huge news for the economy because as the New York Times reported, online gambling in America could be worth anywhere from $6 billion to $100 billion. That is a potentially huge cash influx in these hard times for any state that chooses to legalize it.
Some states like Utah have already made strides and have made it illegal to gamble in the state. But Utah isn’t historically a state with huge fiscal problems like say, California. It will probably become legal there, but the Indian casinos have a lot of power so we will have to see what becomes of this situation
Were the last posts exciting? Yawnnnnnnnn
OK>>>>Gone to Laughlin for a week for some REAL gambling and Texas Hold'M. You guys have fun.
Will on-line gambling hurt "Brick and Mortar" casinos?
From "PocketFives"
AGA: Internet Gaming Won't Severely Erode B&M Gaming Revenue[ return to main articles page ] ..By: John Douglas
Published on May 13th, 2012
Email A Friend According to Frank Fahrenkopf, CEO and President of the American Gaming Association (AGA), legalizing and expanding internet gaming will not severely erode revenue from land-based casinos. Some in the industry have speculated that legalizing internet games like poker could hurt casino attendance and, consequently, revenue. However, organizations like the AGA and Poker Players Alliance (PPA) have seemingly dispelled this notion.
Fahrenkopf was quoted in the Las Vegas Sun following the release of the AGA's annual State of the States report as arguing, “Because we’re talking about internet poker at this time, I could see how offering it online might hurt a small casino that’s dependent on poker. But what we've spent significant time on is the impact of the internet on existing operations and our research concludes that it wouldn’t result in a significant change.”
If anything, according to the Sun, Fahrenkopf indicated that "the approval of internet gambling would expand existing operations because younger players more comfortable with online transactions would start gambling online and eventually find their way to local casinos."
Echoing Fahrenkopf's sentiments was PPA Executive Director John Pappas, who told PocketFives in an exclusive statement, “We’ve long believed that competitive fears over internet poker were misplaced and we are pleased the AGA agrees. Internet poker is complementary, not competitive, to brick-and-mortar operations. Anyone who has followed the growth of industry for the past decade has seen that a rising internet tide lifts all poker boats.”
If you've never heard of the AGA, its website describes the Washington, D.C.-based organization's purpose: "Since 1995, the American Gaming Association has been the leading voice of the commercial casino industry, serving as an advocate for its members and their employees." Fahrenkopf has been a witness in key Congressional hearings about gaming.
The AGA counts among its membership the goliaths of the land-based gaming world, including Caesars Entertainment, Ameristar Casinos, MGM Resorts International, Boyd Gaming, and the Las Vegas Sands Corporation. It also represents various financial services, professional services, suppliers, vendors, associations, publications, and unions ancillary to the industry.
According to the latest AGA State of the States report, land-based casinos have ample incentive to pay attention to what goes on in the internet realm: "In 2011, commercial casino revenues reached $35.64 billion, which was an increase of 3.0 percent compared with 2010 figures. Commercial casinos returned $7.93 billion of those revenues to states and localities in the form of direct gaming taxes – a 4.5 percent increase over 2010 totals." The bottom line: there's plenty of money at stake.
Brick-and-mortar casinos employed nearly 340,000 people in 2011 and paid out nearly $13 billion in wages (an average of nearly $40,000 per year). Gaming revenues have grown over $1 billion in the last two years and 15 states the AGA reported on saw their land-based gaming revenues tick up in 2011 compared to 2010.
The State of the States report indicated that casinos are, by and large, accepted in their communities: "More than half of the community leaders surveyed say casinos have done a good job of providing quality jobs (53 percent) and contributing to local economic activity (52 percent). Seven out of 10 (70 percent) leaders think that casinos do a good job contributing tax revenue and nearly three out of five (58 percent) agree that casinos do a good job generating area tourism."
Over one-quarter of the U.S. adult population visited a brick-and-mortar casino last year and slightly more women than men were among those who patronized gaming establishments. Over half of pollsters the AGA spoke to said their favorite casino games were slot machines and video poker. Only seven percent said live poker.
The State of the States report wrapped up with a spotlight on sports betting, which takes place exclusively in Nevada. In 2011, the state accepted $2.8 billion in sports bets, leading to $140 million in gaming revenue. Nearly half of all wagers placed were on football. In 2012, nearly $100 million alone was bet on the Super Bowl, which pitted the New England Patriots against the New York Giants.
Try...Try Again! Mississippi!
Failed online gambling bill will likely be back next year (Salter)
Published: Monday, May 14, 2012, 5:12 AM
By Mississippi Press Editorial Board The Mississippi Press
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Sid Salter, columnist for The Mississippi Press and journalist-in-residence at Mississippi State University.
When it comes to so-called "sin" taxes, Mississippi has a long track record of contradictory political and public policy behavior.
Despite Mississippi's status as the "gold buckle of the Bible Belt" and a politically active evangelical clergy with clout at the state Capitol, state taxpayers enjoy fruits of the "wages of sin" to the tune of some $536 million annually in various taxes collected on gambling, drinking and smoking.
The sale of "sin tax" items also generates additional sales taxes that exceed another $100 million.
Gaming in the last fiscal year generated $277.8 million in taxes -- $130.9 million to county and municipal governments and $146.9 million to the state.
Overall, gaming provided 3 percent of general fund revenues. Tobacco taxes generated $158 million, or 4 percent of the general fund. Alcoholic beverage taxes generated $71 million, but $8.6 million went to county and municipal governments, leaving $63 million, or 1 percent, of general fund revenues for the state.
Mississippi voters believe -- with varying degrees of factual and historical support for those beliefs -- that they have been promised in the past that legalizing and taxing alcohol sales, gaming and other "sins" would provide support for public education and other noble pursuits.
They also believe that those "promises" have been proven to be either false or grossly overstated.
The other lessons from the ghosts of sin taxes past are that sin tax efforts produce strange political bedfellows. Want to change a local option liquor law? Then prepare to fight both the local churches and the local bootleggers.
Want to change Mississippi gaming laws? Then prepare to fight both the religious community and the entrenched gaming industry.
Since the inception of legal casino gaming in Mississippi in the 1990s, efforts to enact a state lottery or other major changes have met with opposition from the churches and from the big casino companies.
So when Democratic State Rep. Bobby Moak introduced House Bill 1373 during the 2012 session, religious critics of any expansion of legal gaming of any kind in Mississippi reacted.
But this time, many of the big casino companies supported Moak's attempt.
Moak's "Mississippi Lawful Internet Gaming Act" was a reaction to a 2011 U.S. Justice Department ruling that held that the Interstate Wire Act of 1961 -- a federal law that has complicated efforts to legalize online gaming -- was being interpreted as only outlawing sports betting.
In the past, the federal Wire Act was interpreted as outlawing all forms of gambling across state lines.
Moak argued that the legislation was necessary to allow Mississippi's existing gaming industry to have more control of its own destiny and to allow the state to regulate what will already be taking place online -- and to tax it.
The bill -- which died in committee after being double-referred to Gaming and Ways and Means -- included a measure to allow the state's existing gaming licensees to offer online games of chance that are regulated and taxed by the state, but on different terms than in the bricks-and-mortar casinos.
Nevada and New Jersey are already changing laws to address new online gaming competition. Since the Justice Department ruling, six states (California, Hawaii, Iowa, Illinois, Mississippi and New Jersey) have introduced legislation authorizing forms of online gaming in their states.
Utah has passed legislation specifically prohibiting Internet gaming, and Michigan has pending legislation prohibiting online lottery sales. Maine has altered its gaming statute in response to the Department of Justice ruling. Regardless the tension between the strange political bedfellows made by "sin" taxes, Mississippi lawmakers haven't heard the last of the online gaming issue. The state's existing 30 commercial casinos had gross gaming revenue of $2.39 billion in 2011.
The state's 2011 gross gaming revenue declined to the lowest level since 1998 -- a sign that perhaps online gaming competition regulation is an issue that should get a legislative second look.
Sid Salter is journalist-in-residence at Mississippi State University and a syndicated columnist. His email address is sidsalter@sidsalter.com.
Maybe a Christmas present?
Nevada Online Poker in 7-10 Months, Regulator SaysInternet Gaming Security Main Topic at Industry Meeting in Las Vegas
by Brian Pempus | Published: May 14, 2012 | E-mail Author
From CardPlayer 5/14/2012
Nevada Gaming Commission Chairman Peter Bernard -- left -- and Gov. Brian Sandoval -- right
Americans could see the first U.S.-based licensed and regulated real-money poker site this holiday season.
At Monday’s Gaming Policy Committee meeting in Las Vegas, Nevada Gaming Control Board Chairman Mark Lipparelli said that the Silver State will likely issue its first licenses in 30-60 days — and it will probably take another six to eight months after that before games are running.
At the last meeting, Lipparelli suggested a slightly earlier date for licenses. The majority of time will be devoted to regulators approving the technology of licensed sites. This spring, the state finalized rules for the private testing of software.
Despite efforts from a handful of other states, Nevada remains the only jurisdiction in the country where online poker is legislatively authorized.
The convergence of gaming insiders on Monday centered on the issue of security in the online realm. Bwin.party Digital Entertainment CEO Jim Ryan gave an extensive presentation in front of the 11-member panel headed by Nevada Gov. Brian Sandoval.
In his speech, Ryan highlighted the success of his company’s efforts to mitigate concerns of fraud, player collusion and underage gambling in Europe. He said that out of one million unique users per month, there are 10 cases of underage players making it through their layers of security.
The Silver State is still trying to figure out how to create synergy between policy makers and businesses on the issue of identity verification.
When Gaming Commission Chairman Peter Bernard asked Ryan about the possibility of a uniform system to regulate player registration issues, the CEO said that the industry prefers having “flexibility.”
Bernard referred to it as poker sites “policing” themselves.
However, both Ryan and MGM Resorts CEO Jim Murren — whose company has a partnership with Bwin.party to eventually run games — admitted that they’d like a “centralized list” of individuals who, for whatever reason, shouldn’t be eligible to play online. The list would included “fraudsters” and those who have self-excluded, for example.
Jim Ryan
In response to Gov. Sandoval’s concern about residents of neighboring states logging into Nevada’s intrastate system, Ryan said that current geo-location technology is 99.8 percent accurate.
At one point during his presentation, Gov. Sandoval lightheartedly asked Ryan to slow down for benefit of the recorder. Ryan responded: “I’m just excited to be here.”
After leaving the U.S. market in the wake of the Unlawful Internet Gambling Enforcement Act of 2006, the publicly-traded company looks to be a huge player in its return — regardless of whether it’s under a state-by-state patchwork or a federal regime. Bwin.party recently struck a deal with a California tribe in anticipation of a bill in the Golden State.
Despite Nevada’s progress, Lipparelli said Monday that he still prefers a federal law.
The purpose of the resurrected Gaming Policy Committee is to make recommendations for the next legislative session. Murren said he’d like to see tweaks to the state’s online poker bill — which include increasing license terms and possibly reducing the fees.
How the fight is progressing!
from Bluff Magazine 5/4/2012
THE FIGHT: The Latest on the Regulation of Online Poker
Chris Krafcik | May 4, 2012
In the newest addition to BluffMagazine.com, Chris Krafcik presents The Fight with the latest headlines and insight from the attempts to regulate online poker in the United States. This is his debut column.
Another week in Internet poker politics. Another batch of delicious news bytes. Time to strap your speed-read on, BLUFFers.
Let’s kick things off with the Capitol Hill Co-Sponsor Count. Since last year, Texas Rep. Joe Barton’s flagging Internet poker bill, H.R. 2366, has drawn 30 politicos to its banner, edging out California Rep. John Campbell’s moribund competing Internet gambling bill, H.R. 1174, which has drawn 29.
GovTrack.us, a Web site that tracks legislation in Congress, generously gives H.R. 2366 a nine percent chance of being enacted before the session ends in January 2013, even-steven with H.R. 1174, which was also given a nine percent chance at succeeding. (Yeah, right.)
Meanwhile, no murmurs, gurgles, burps or anything, really, this week from Nevada Sen. Harry Reid and Arizona Sen. Jon Kyl — the Senate’s No. 1 and No. 4 Dudes, respectively — about rumored draft legislation that would authorize Internet poker and online lottery sales in participating states and Indian nations. Last week, spokesmen for both men — my bad: both Dudes — declined comment on the draft proposal when contacted by The Wall Street Journal.
At the GIGSE Internet gambling industry conference in San Francisco last week, Mark Macarro, chairman of California’s most politically powerful Indian tribe, the Pechanga Band Of Luiseno Indians, declared that the one and only Internet gambling bill pending in Sacramento is “DOA.” Macarro called that bill — S.B. 1463, for you policy junkies out there — “a dysfunctional product that encourages dispute.” (Zing!) No word yet on whether S.B. 1463 will be heard in the Senate Governmental Organization Committee this month, as planned.
On Caesars Entertainment’s first-quarter earnings presentation this week, Chief Executive In Chief Gary Loveman told analysts that he expects a “favorable result” with regard to Internet gambling legalization in New Jersey, though “probably not immediately.” He also said the company’s license application in Nevada, which, if approved, would allow it to operate intrastate Internet poker there, could get the thumbs-up from regulators before calendar yearend. Good news of a kind for you WSOP fiends in Nevada.
The Massachusetts House Clerk’s Office this week confirmed that Internet poker legislation — proposed as an amendment to the state’s pending budget bill — had been effectively withdrawn from consideration. State Rep. Daniel Winslow, Internet poker’s chief proponent in the Bay State, recently told GamblingCompliance.com that, for now, the budget amendment was intended to stir up discussion in the Legislature. Next year, he said he hopes to get legislation passed
Minnisota is getting involved!
From PokerNewsDaily 5/12/2012
Minnesota Gov. Mark Dayton Signs Bill Expanding Poker At Racetrack Rooms
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By Earl Burton - May 6th, 2012 ..
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In a demonstration of bipartisan agreement – and rapid movement of legislation through the appropriate bodies of government – Governor Mark Dayton of Minnesota signed a bill on Friday to expand the poker rooms at the two thoroughbred horse tracks in the state.
The legislation had been proposed to settle a long-simmering battle between two gaming entities in the state. The two racetracks, Canterbury Park and Running Aces Harness Park, had been looking to turn themselves into full-fledged “racinos” that would include slot and table games along with their poker offerings. This was something that the Indian casino interests in the state vehemently protested, as the proposed expansion was viewed as something that would take away customers from their operations.
The Minnesota Legislature set about last weekend to attempt to end this standoff between the two interests. Last Saturday, the Minnesota Senate passed the bill, House File 2795, through by a 44-18 vote, while the House pushed it through by a 97-34 margin. With the signing of the bill by Gov. Dayton, both sides of the gaming issue seem to have won something for their efforts.
The two racetracks in the state will be able to expand their poker rooms from 50 to 80 tables and they will have unlimited tables for poker tournaments. In addition to this, the two racetracks can now offer higher betting limits (from $60 to $100) and other table games, such as blackjack, that players will now play against the house (previously, players had to play each other in those games in what were called “non-bank” games). The Indian casinos will now be able to offer simulcast betting on horse racing and other off-track betting (OTB) operations.
Randy Sampson, the president and Chief Executive Officer of Canterbury Park, discussed how their particular poker room would phase in the new laws. “Initially, we will increase the number of tables hosting live play from 50 to 60, the card room’s current capacity, to accommodate our customers during peak periods,” Sampson said in a statement following the bill’s passage. “Additional expansion, higher betting limits and expanded poker tournaments will be implemented based on market demand.”
The adjustments to the poker regulations for the racetracks aren’t about making poker more popular in the state. The increased number of cash game tables – as well as the increase in tables for tournaments and other table games – is a direct effort by the state to raise revenues for the tracks to preserve their place in the horse racing industry. Through the increased revenues, Canterbury Park and Running Aces Harness Park will be able to offer increased purses for their live races, potentially drawing more business to the state.
“While this legislation will not solve the revenue problems the industry faces, it is an important step in the right direction for Minnesota horse racing,” Sampson stated. “We are grateful the Legislature and Governor recognized the current, fragile state of horse breeding and horse racing in Minnesota and provided new tools we can use to strengthen our business and enhance purses.”
Jeff Hilger, the president of the Equine Development Coalition of Minnesota, agreed with Sampson regarding the new poker regulations. “Racing purses are the fuel of our horse industry,” Hilger said after the passage of the new regulations. “This legislation will help stop the decline of the breeding industry in Minnesota and send a clear sign to Minnesota owners and trainers that the state is serious about protecting the future of the equine industry.”
Although it does seem as if the passage of the laws is more to aid the state’s other interests, the passage of the new poker regulations in Minnesota once again shows the power of the game to raise revenues that can take care of individual state’s multitude of issues.
Nice article find Profit!
Looks like New Jersey is on the move!
from the NorthJersey.com 5/4/2012
I warned you here two months ago that “budget season” would dominate Trenton statehouse politics for quite some time, at the expense of almost everything else – including efforts to legalize online gaming in New Jersey.
But the state Assembly Regulatory Oversight and Gaming Committee will finally hold a hearing on the bill on Thursday – along with bills related to allowing simulcast betting at the currently-dormant American Dream Meadowlands entertainment and shopping complex; bingo licensing; and use of handheld mobile devices to place bet at state racetracks.
This hearing is a followup to one in March that produced an interesting result.
A prominent state Constitutional expert testified that day that the Legislature did not need voter approval to pass a bill permitting online gaming (at this point, not just online poker but even online slots or roulette – we’ll see if that broad interpretation makes it to the finish line, however). But the Assembly committee still did not vote on the matter, instead elected to “digest” the information.
That threw a monkey wrench into the goals of state Sen. Ray Lesniak, D-Union, who already got a parallel bill through a state Senate committee. With the Assembly not even through a committee vote, online gaming was pushed to the backburner.
That has, not surprisingly, left Lesniak frustrated. His latest vent here reprises gripes that Governor Christie is dragging his feet on internet wagering and on sports betting due to political reasons.
Such needling isn’t necessarily good for online betting supporters. Christie always has seemed lukewarm at best on such matters as it is, so he wouldn’t lose any sleep, it seems, on seeing gambling issues languish.
But this is Jersey, don’t forget – blunt talk is not foreign to politicians, and Christie and Lesniak battle one day and collaborate the next. For instance, the tax breaks that Christie lauds for getting the $2.4 billion Revel casino finished in Atlantic City last month was a Lesniak-sponsored bill.
For whatever reason, Christie seems reluctant to show his cards on gambling matters. He’ll have to make some decisions eventually – but maybe not until this fall, if the state Senate and Assembly don’t send him a revised online gaming bill by the time they take July and August off as their long summer break.
And the pps went down?
another confirmation of Bwin deal.
From Reuters
LONDON, MAY 8 - Bwin.party digital, the world's largest listed online gaming company, said it had prepared the ground for a possible relaxation of U.S. internet betting laws by signing a deal with a Native American tribe which operates gambling in California.
The company said it had entered into a ten-year agreement with the United Auburn Indian Community ('UAIC'), which operates the Thunder Valley Casino Resort near Sacramento, to provide the technology to run online poker services should state laws allow.
"Combining our own significant assets and resources with those of UAIC will create a strong partnership that is well-placed to seize the opportunities that will arise if appropriate online poker legislation is enacted in the Golden State," said Jim Ryan and Norbert Teufelberger, the co-CEOs of bwin.party.
There have been indications that a U.S. internet betting ban could be relaxed and several European businesses have been looking at ways to enter what they predict will be a highly lucrative market.
Bwin.party said UAIC would secure the necessary licence to operate online poker services in California while the London-listed business would provide technology and operational expertise.
"We see the legalisation of Internet poker and other Internet gaming as being inevitable," said UAIC's Tribal Chairman David Keyser.
Shares in Bwin.party, which was formed by the merger of Austria's Bwin and PartyGaming last year, were down 0.25 percent to 158 pence at the open on Tuesday, in-line with the FTSE-250 midcap index.
This is going to take how long?
Gambling is coming to a social game near you. This was the unanimous opinion of everyone who attended GIGse, the Global Gaming Expo, in San Francisco last week. The big question is when?
The answer, based on the all the legal and regulatory roadblocks that exist, is not anytime soon. And, in the ad-libbed words of the Grateful Dead, “what a long strange trip it’ll be.”
Everyone agrees that online gambling will be legalized. The Justice Department’s recent decision that the Wire Act of 1961 does not apply to states selling lottery tickets across state lines is a huge deal and opens the door to legalized gambling in the U.S.
Other factors pointing to the legalization of online gambling is that state governments are in debt and need the money from taxing gambling and the fact that millions are playing social casino and poker games on mobile devices and Facebook, but with virtual, not real money. Just last week, it was announced that casino games have overtaken farming as the most popular game genre on Facebook!
So why the delay? Ironically, it’s the government.
The crowd at GIGse (dressed in suits and clean-shaven) looked like they would feel very comfortable at a conservative, Republican, small-government-loving rally. Ironically, they all agreed that what they’d prefer the federal government take the lead in legalizing gambling, so that we’d have uniform rules and regulation across all 50 states. The chances of US Congress pulling this off, however, are about zero.
Instead, every single state is going to pass its own gambling laws. California is currently working to make poker legal, and both Nevada and New Jersey are drafting laws to make online gambling legal in their states. The hope is that there will be some coordination as you see in horse racing and lotteries sometimes. But, most likely, anyone who plans to offer an online gambling site in the U.S. will have to wait for the majority of states to pass legislation and then abide by the rules of 50 separate states.
But wait, there’s more! Gambling will be online and very mobile. That opens a slew of issues:
Taxation: Every state will probably have its own tax rate as well as the federal government. Do you tax the casino based on where the land-based casino is located or where the online bet took place? Do you tax gamblers on their winnings based on their residence or the location where they gambled? How do you handle losses and withholdings?
Location: How do you verify someone’s location in a way that can’t be spoofed? Standard geo-location in apps today will not work. Locaid verifies location via via cell phone tower triangulation, but what if you are in a zone not covered by cell towers or close to the state borders?
Risk Management: How do you prevent fraud and money laundering (which has become a big issue since 9/11 due to terrorism. Macau, which is four times larger than Vegas is driven by money laundering, so it’s a huge issue to deal with.
Legal Jurisdiction: Since online gambling will be mobile, how do you handle legal issues across state lines? For example, what happens if you playing poker on your phone driving in California (where it will be legal) but cross into Arizona (where it may not be). Have you committed a felony?
Age Verification: How do you verify someone’s age online? This is not a problem with social casino games total since it’s using virtual currency and there is an assumption you are 13 years or older. But, once gambling is involved, you have to verify age. And, no one had an answer for how you do that.
As you can see, there are many roadblocks. The consensus at the show was that it would not be until 2014 that online gambling would be legal in the US.
I actually think it could be later than that.
There is one more roadblock which no one talked about and that is the moral and ethical issue.
A lot of people in the gambling and social gaming industries are salivating at the prospect of converting the millions of social gamers playing free virtual casinos into online gamblers. But, is it really a good idea?
Do we really want today’s free social casino games to be a trojan horse for millions of Americans and children to get addicted to online gambling? Right now, social games are all about good clean fun. Throw gambling in the mix, and this changes.
My big takeaway is that online gambling will be legal in the U.S. and that social games will lead the way. But, it’s going to take a longer time to happen than most people in the games industry realize. And, this is probably a good thing. It’ll give us time to decide if this is really the right thing to do.
Image courtesy of iStockphoto/Pgiam
•Valve releases “Perptual Testing Initiative” DLC, Portal 2 players never seen again (PC)
•Dropping in on Drop Out developer Digital Poke [interview] (iPhone)
•Binding of Isaac "mega expansion" set to mega-expand your terror and joy May 28th (PC)
•Kobojo's PyramidVille forces Zynga to visit LawyerVille (iPhone)
This article originally published at Gamezebo here.
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Gamezebo is a Mashable publishing partner that features reviews, previews, walkthroughs, news for the latest and greatest in casual (and not-so-casual) games on the PC, Mac, iPhone, iPad, Android, and Facebook. This article is reprinted with the publisher's permission.
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Fed and states fight over on-line poker!
From Poker News Daily. published 5/7/2012
Battle Lines Being Drawn Between States, Feds Regarding Online Poker
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By Earl Burton - Apr 26th, 2012 ..
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According to a report in a major newspaper, the battle lines are being drawn between state governments and the U. S. Congress regarding the online poker issue.
In an article on Wednesday in the Wall Street Journal written by noted journalist Alexandra Berzon and assisted by Heather Haddon, the duo report that Nevada Senator and Senate Majority Leader Harry Reid and Arizona Senator Jon Kyl are currently working on legislation that would regulate and legalize online poker federally in the United States. While this news is not earth-shaking to the poker community – it has been long rumored that the Senators were working on such legislation – what is the big topic is how the federal government is trying to subjugate state governments from acting on their own legislation.
Berzon and Haddon report that, while Sens. Reid and Kyl have not put their proposals in front of the Congress as of yet, the states are rapidly passing the Congress when it comes to enacting their own legislation. This, according to a former Congressman quoted in the Berzon and Haddon piece, is something that the Congress is attempting to thwart.
“States are moving rapidly and the federal government is saying, ‘time out,’” former Nevada House of Representatives member Jon Porter is quoted as saying by Berzon and Haddon. Former Rep. Porter is a lobbyist for online poker companies and made that comment during an internet gambling conference yesterday. As the states are moving forward with their own versions of online poker regulation, Sens. Reid and Kyl’s proposals may not even see the floor of Congress this year.
The activity regarding online poker regulation stems back to a letter sent by Sens. Reid and Kyl to Attorney General Eric Holder last summer. In that letter, the Senators pushed for clarification of the Department of Justice’s stance regarding online gaming, including poker. In that letter, the Senators stated their opposition to legislation from the states allowing online gaming, requested clarification of the DoJ’s stance and asked that the Department of Justice “consult with Congress” before finalizing any position regarding the question. This was after the April 15 “Black Friday” indictments by the DoJ, which shut down three of the major online poker operations to U. S. customers.
For Sens. Reid and Kyl, it became a case of “beware of what you wish for.” In December, the Department of Justice came back with a significant change in their approach. The DoJ stated that the Wire Act of 1961, which had long been used as the reason for federal crackdowns on online gaming, only applied to sports betting. This has led to the individual states moving forward with their own rules and laws regarding not only online poker but also operating state lotteries online and potentially offering other online gaming options, such as slots and other table games.
Following that bold announcement, several states have either considered online poker legislation or are enacting it as we speak. Nevada, of course, has begun accepting applications for its intrastate online poker operation and it is expected to open before the end of 2012. New Jersey has legislation in front of its Legislature for regulating online gaming. In California’s proposed legislation, there is the potential to go beyond just online poker and offer full casino operations. Illinois was the first state to offer its lottery online to its citizens, making millions of dollars by opening it up during the rush in the record setting Mega Millions drawing from late March.
Berzon and Haddon report that the federal legislation from Sens. Reid and Kyl would look to overturn many of those maneuvers by the states. The proposed legislation from Sens. Reid and Kyl would allow for a federally regulated online poker industry but would prohibit any other online gaming and lotteries from being offered online. Of course, if the Reid/Kyl proposals were to pass through Congress and become law with President Barack Obama’s signature, the legislation would supersede any state-enacted laws.
The potent power of the casino industry would prefer to see federal regulation of online poker, but they are not sitting on the sidelines as the states move forward. Several of the top casino operations in Nevada, including Caesars Entertainment, Boyd Gaming and MGM Resorts International (to name a few) continue to push for federal regulation but have also applied for licenses in the intrastate Nevada industry, seemingly playing both sides of the coin.
As the battle of online poker moves forward, there could be a collision course between the power of the federal government to act in the national interest, the rights of the states to govern their own citizens and the powerful land-based casino industry looking to get in on the action.
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Facebook is not a solution?
Online gambling on Facebook is much farther away than we think
.by Joe Osborne, Posted Apr 26th 2012 11:20AM GameNews.com
Like, another-two-years-away far. Bwin.party Digital Entertainment co-CEO Jim Ryan said as much during the recent Global iGaming Summit & Expo in San Francisco, according to VentureBeat. The online gambling executive believes that the U.S. market won't be ready for nationwide online gambling until 2014, and that's assuming the states get their act together in time.
A recent Department of Justice decision essentially put it up to the states to decide whether they'd like to legalize online gambling. But here's the issue: Online gaming--and pretty much all of the Internet, for that matter--doesn't operate at the state level. It works on a global (or at the very least country-wide) level. There are numerous legalities and regulations to be considered now that online gambling will be handled by the states. Age and location verification alone are gargantuan hurdles.
Gambling tax expert Rob Bossart made this example, according to VentureBeat: "If a consumer uses an online gambling app on a mobile phone while in Arizona, would the consumer be breaking a law? Or would they have to pay taxes to the state of California?"
While game makers and casino operators already have their ducks in a row for the social-gambling-meets-social-gaming collision, we're a ways away from this being a nationwide reality. Regardless, gambling execs are determined. "We have all missed the opportunity to build tournament-style gambling games (for no real-money betting) on Facebook," online gambling firm PKR CEO Malcolm Graham said. "But in the next 12 months to 18 months, our gambling industry will move onto Facebook."
Are you excited for or dreading the onset of gambling on Facebook?
It's all in the semantics?
From "Innovation Trail" NY! 5/1/2012
The rules on legal gambling in New York State can be a little murky.
Casinos on Indian Territory are allowed, but not elsewhere - for now. Gov. Andrew Cuomo has been calling for the legalization of casinos in the rest of the state.
New York also already has what are known as “racinos”: horse racing tracks where there are also video slot machines, along with plenty of betting on the actual horses.
Betting on those same horses online is also allowed. But betting on poker and other card games on the internet is not.
Why?
The exception for horse racing has to do with the fact that it’s a sport, and thus different, according to state Assemblyman Gary Pretlow (D-Mount Vernon).
“Horse racing is actually a publicly attended event that no one is really controlling,” says Pretlow, who chairs the Assembly’s racing and wagering committee. “Whereas [in] online gaming, there are too many opportunities for people to cheat.”
But if it’s a sport, then why doesn’t New York allow for betting on all sports, like baseball or football?
It has to do partially with just who - or what - is competing in the sport, according to attorney Todd Engel, who specializes in horse racing.
“Wagering on athletes has never been part of the framework in New York State,” Engel says.
Horse racing wedges itself between betting on human athletes and the controlled environment of table games, says Engel.
Big business
But perhaps the biggest factor is money. Horse racing is a nearly $2 billion industry for the state, according to the New York Racing Association.
And since attendance at race tracks is declining, off-track betting (OTB), video slot machines, dial-a-bet and now online betting are making up a bigger chunk of that.
The problem, says Pretlow, is that while interest in playing the ponies may still be there, fewer people want to make the trip out to the track anymore.
“Horse racing is a spectator sport and people no longer have the desire to go to the race track to bet,” he says. “But we have many different venues for them to view racing and to bet.”
The more ways the state allows betting on horses, the more places there are for it to collect revenue.
That’s not possible with sports or card wagering on the internet. Those are controlled by the federal government so New York wouldn’t be able to take a cut, according to Engel.
Going online
But further parsing of the world of horse wagering poses challenges for the older forms of betting.
“No doubt there is an opportunity that [online betting] could slightly hurt the branches themselves, but we do realize it’s the way of the future,” says E.J. Merriman, branch manager for Western OTB, which owns a track and several parlors in western and central New York.
Western OTB will be launching its own online gambling service soon, according to Merriman.
“It’s a slightly struggling industry,” explains Merriman. “It’s something that has to compete with the flash of other sports and other gambling entities that have the noise, the bling, bling, bling and the lights.”
Most of the customers in his parlor are older. Along with declining attendance at the track, customers at OTBs have declined too, says Merriman.
He hopes getting younger fans into the sport through the internet will entice them to come out - be it to one of his OTB parlors or to the track itself.
Is this causing our pps to sink?
POKER bill Tribal group comes out "opposed unless amended"
By PE Politics on April 26, 2012 5:12 PM
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A prominent group of California tribes with casinos has announced its opposition to the current version of state Senate legislation that would legalize online poker.
In a letter Wednesday, the Tribal Alliance of Sovereign Indian Nations said that it is "strongly opposed" to SB 1463 as written because of the measure's "fundamental disregard for the unique government-to-government relationship between the State and California's tribal governments."
TASIN includes several tribes with successful casinos in Riverside and San Bernardino counties. One Two of its members, the Morongo Band of Mission Indians near Banning and the San Manuel Band of Mission Indians near San Bernardino, is a member of the tribe-card club California Online Poker Association [UPDATE: The Morongo tribe has not been a TASIN member for six months, a spokesman said.]
State Sen. Rod Wright, D-Los Angeles, and Senate President Pro Tem Darrell Steinberg, D-Sacramento, are the authors of the poker bill. Supporters say legalization would generate as much as $200 million for the general fund while protecting players from illegal offshore games.
The bill, introduced in February, awaits its first committee hearing.
The objections in this week's TASIN letter have been heard before in the years-long debate over online poker.
TASIN describes SB 1463's "blanket waiver of tribal sovereign immunity" as unacceptable. It also wants the bill to limit online poker licenses to only those entities already authorized to offer poker games in their bricks-and-mortar facilities.
The bill's allowing games besides poker after two years also "is not acceptable," the letter reads.
In other gaming developments, a Senate committee this week unanimously approved legislation that would legalize sports betting in the state.
The measure would have no immediate effect because federal law outlaws sports betting in all but four states. But supporters say California's legislation, if approved, would bolster efforts to change the federal law.
Go Mass. get on-line!
While the House has already adopted an order rendering gaming amendments to the budget virtually off limits, Norfolk Republican Rep. Dan Winslow is promoting his proposal to create three Massachusetts licenses for intrastate internet poker.
According to Winslow, he wants to make sure House members are aware of options to generate additional state revenues and hopes his plan will merit consideration before the House and Senate recess formal sessions for the year this summer. Under his plan (amendment 827), each license would require a minimum $10 million fee and there would be a 25 percent tax on gross gaming proceeds.
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IMHO...for every sell, there was, indeed, a buyer!