Connecticut Forum

One of the first states to venture into online gambling is Connecticut, with a forum planned for Thursday February 9^th. Located at the Connecticut legislative office building and organized by State Senator Joan Hartley and Democrats State Representative Stephan Dargan, the meeting will be an opportunity for individuals to gain information about the pros and cons of the industry and what the market could offer both companies and residents. A range of speakers have been invited, including Mohegan Sun Casino’s Chuck Bunnell, Foxwoods Resort Casino’s Bill Satti, Sportech Inc’s Brooks Pierce and Connecticut Lottery Corporation’s Anne Noble. Meanwhile, Carlos Reinoso, the representative from Connecticut on Problem Gambling and Bob Clark, State Attorney General Office’s representative, will also be present.

Connective Governor D. Malloy has already stated that, whether individuals like it or not, online gambling is coming to the state. He revealed that the problem now was to ensure that legislation was created carefully and considerately.

Hawaii Seeks to Create Gambling Corporation

As Connecticut looks set to embrace online gambling, authorities in Hawaii have put forward a bill to the state House to create a gambling regulatory body. The Hawaii Internet Lottery and Gaming Corporation (HILGC), if it goes ahead, will be able to offer online games of skill and chance, ranging from lottery and casino slots to poker games. Whilst real money wagering will only be available for intrastate gambling, the HILGC will also provide free-to-play titles which both residents from Hawaii and visitors to the state will be able to enjoy. In addition, the gambling corporation will be able to host two land based gambling events during each year as a way to attract a number of gambling tourists to the state.

Sponsored by House Speaker Emeritus Joseph Souki, Representative Angus McKelvey and Representative Faye Hanohano, the bill also sets out that the HILGC will have tender its online gaming provider services to a company who can prove that they have haven’t previously offered internet gambling services to American citizens.

Increasing Nevada Casinos Bid for Licenses

It has previously been revealed that many land based casinos in Nevada have already made submissions to have their online gambling activity legalized. Though some casino experts are concerned that the small pool on online gamblers in the state would mean that any internet activity would simply not be viable, this has not stopped bricks and mortar casino owners from putting forward applications.

The latest in this line of application submissions is Fertitta Interactive, who has sought to gain their own online casino license. Fertitta Interactive has a team of experienced gambling experts at its helm, with the company partially owned by Lorenzo and Frank Fertitta; the owners of Station Casinos and the Ultimate Fighting Championship brand. Tom Brietling and Tim Poster, previous owners of the Golden Nugget, also have a stake in the company. And, with Fertitta Interactive having bought software provider CyberArts earlier in 2011, they are fully prepared to move into the intrastate online gambling arena.

One of Fertitta Interactive’s founders, Lorenzo Fertitta, spoke of the online gambling regulation, saying that he fully welcomed plans to allow residents to play on the internet. He added that Nevada was known around the world as a leader in gambling regulation, and that they were therefore very happy to file their application within the state. In addition, Fertitta explained that CyberArts had a great track record with complying with global jurisdictions.

Nevada Licenses Gain Steam

The announcement by Fertitta adds to the long line of Nevada based casinos that have already made applications for online gambling licenses to authorities. The extensive list of bricks and mortar venues who have already applied include South Point, Monarch Casino, Caesars Entertainment, Boyd Gaming and MGM Resorts. Meanwhile, software provides including IGT, Shuffle Master, Cantor Gaming, 888 Holdings, Bally Technologies and Aristocrat Technologies have also made submissions.

Washington Buck’s the Trend

Whilst many states look into ways that they can start their intrastate online gambling, authorities in Washington are set to buck the trend. Though a previous bill was passed allowing online gambling to go ahead, members at the council have revealed that they plan to repeal the previous Districts proposal for online gaming. Chaired by committee member Jack Evans, individuals will review how the first United States bill for online gambling was passed. There is concern that the bill was included on a mandatory budget bill, and was allowed to pass without discussion. Whilst leading online gambling proponents Marion Barry and Michael A. Brown are set to push for the bill to remain, undecided voter Muriel Bowser and critic David A. Catania could see Washington having to start on their online gambling legislation from scratch if the bill is repealed.

Online Gambling Remains Uncertain

Whilst the hype around intrastate online gambling remains, many are still uncertain on how quickly any bills will be passed. Many casinos were expecting to be able to start operations within the first quarter of the year, allowing their bricks and mortar venues’ to offer gambling online as an entirely new industry. However, there remains a lot of conflict between critics and proponents, meaning that ultimately legislation and legalizing bills will not be pushed through with any speed. And, though many companies and gamblers are chomping at the bit to be able to access their footie games online, it seems that residents may be waiting far longer than a mere few months before they can start gambling from the comfort of their own homes.

UK Seek Online Gambling Direction

In the UK, the United Kingdom Parliamentary Select Committee for Culture, Media and Sport are currently having talks in relation to online gambling regulation. With the objective to give the industry some direction of how to regulate the online world, there is particular interest from Gibraltar and Alderney due to the island’s being able to operate and advertise within the British Isles but avoid UK taxes. However, with the UK considering secondary licensing, both islands would discover direct regulations changes, with the spokespeople for each destination having opposing views.

Alderney Authority for Tighter Regulations

In Alderney, the spokesman for the Alderney Gaming Control Authority revealed that they wanted to tighten regulations with immediate affect. Andre Wilsenach said that licensee operations needed to be very carefully assessed before given the go ahead, particularly due to the island’s Full Tilt Poker having been found in violation of its license conditions last year. Alderney’s gambling authority suggested that licensees should be given a risk factor, determined by their financial processing arrangements, the licensing jurisdiction that they were under, where the operators did business and a number of other factors. This would allow online operators with a higher risk to be more closely regulated by auditors, with venues paying the costs of having quarterly auditing conducted.

Gibraltar Concerned with UK’s Lack of Experience

Whilst Alderney calls for more regulation, a spokesman for the Gibraltar Gambling Commission, Philip Brear, said that the island was disappointed with UK’s lack of experience. Whilst the UK and Gibraltar have established a gambling relationship, Brear stated that it had not been as productive as hoped for and that, because the UK Gambling Commission had far less regulatory experience than Gibraltar, regulatory changes being talked about could be restrictive.

Gambling Prevalence Statistics

Meanwhile, whilst the talks continue over the direction that UK gambling operating regulations should take, the Gambling Commission has revealed its latest statistics for gambling prevalence. Whilst the UK online gambling market was worth around £1.9bn in 2010, it was shown that most people gamble at overseas establishments. Just one third of those who gambling online use British websites, with the past two years seeing a 19per cent fall in casino games and casino because many UK brands have moved offshore.

U.S Stand on Intrastate Gambling

Meanwhile, in America, concerns have been raised over the legislation of intrastate online gambling. On December 23^rd, 2011, it was revealed that the Department of Justice (DoJ) was considering that intrastate online gambling could be legalized. The gambling industry welcomed this news, with six or so states believing that they would be able to have operations up and running by midway through 2012. However, with only three weeks passed since the DoJ’s comments, many experts are now saying that the authorities view may be far too simplistic, and there is still a long way to go before online gambling can see an American resurge.

Cautionary Note from Gaming Analyst

One of the first notes of concern came from Deutsche Bank gaming analyst, Andrew Zarnett. Preparing a report on the change in online gambling legislation to show investors, Mr. Zarnett expressed that the intrastate legalization had been misplaced and hyped-up by those who wanted to push the changes through. He made it clear to investors that the only change was that there would be a discussion on intrastate gambling, instead on having uncertainly whether talks would occur at all. He added that there had been no clear indication on the forms of gambling which could be legalized, nor how long the legislation process would take. Zarnett also referred to history as showing that, if legislation goes ahead, it is likely to be on a state-by-state basis.

Nevada Attorney Speaks Up

In one of America’s most notorious state’s for gambling, gaming attorney in Las Vegas, Jennifer Carleton, said that the announcement by the DoJ was a step forward to regulating online gambling, even though there were still concerns surrounding the issue. Ms Carleton urged parties to be proactive, attentive and alert in their response to the December findings, though warned that future discussion by the DoJ could reverse the interpretation that many made of the statement made in 2011. For Nevada, steps have already been made to fast tack legislation should it go through, with online poker regulations already being approved on December 22^nd, 2011, in an effort to being intrastate gambling as soon as allowed. Mark Lipparelli, Nevada Gaming Control Board Chairman, revealed that ten casino operators, manufacturers and equipment providers had already put in license applications, adding that the time it would take to issue the licenses was unclear.

South Point A Major Player

One such license request was from South Point Hotel Casino and Spa. Owner Michael Gaughan already operates an online free-play poker website, allowing players to win noncash and cash prizes which include South Point casino trips, where winners can indulge in love poker events. However, Mr. Gaughan has said that he believes intrastate gambling will not be possible for many states with small populations, especially Nevada. Here, online poker rooms would not be able to create enough money for viability, making interstate gambling vital.

Online Gambling Uncertainty

There remains a huge amount of uncertainly surrounding online gambling legislation in the US, even when it comes to intrastate possibilities. Whilst the DoJ’s latest remarks may have been welcomed by many gambling authorities, there remains a long way to go before operations become available for consumer use. And, though many may have seen fit to put through bills to get online operations working as quickly as possible, it may be many months before anything materializes.

New Jersey Renews Online Gambling Attempts

In 2011, New Jersey was set to be one of the first US states to regulate and legalize online gambling after the Senate and the Assembly agreed and passed an appropriate bill. However, Governor Chris Christie stepped in and vetoed the bill, stopping the legalization process in its tracks. New Jersey seems not to have lost its enthusiasm for the bill though, and officials from the state are still looking for ways in which they can allow residents to access online gambling facilities.

DoJ Change of Policy

One of 2011’s key persons on pushing through the bill, Senator Ray Lesniak, revealed that a new change in the US Department of Justice (DoJ) gambling policy means that there may be certain advantages which can be taken. The change means that the law will not be broken via intrastate online casino gambling, offering individual states the chance to begin their own gambling practices. And, with no time to waste, Senator Lesniak has revealed that he intends to get a bill in front of Governor Christie within the next few weeks.

Lesniak’s Bill

Senator Lesniak’s bill was first introduced during August 2011 after Governor Christie raised concerns over online gambling. New additions were created, including a $1,000 fine per player per day for individuals who were found to be using online gambling operations which were illegal. An additional $10,000 fine was applicable for advertising of such operations. Meanwhile, the only people able to utilize the New Jersey online gambling websites would have to be state residents, over 21 years old and physically within the boundaries of the state to be able to actually place wagers at online casinos. The carefully developed bill is expected to find support in all areas, with a number of steps to ensure that customer and casino safety is kept. Online gambling licensees would have to pay $20m a year for the first three years to subsidize the horse racing tracks, whilst $100,000 of revenue would fund compulsive gambling programs. Revenues would also see tax increased from the 8per cent on land casino revenue, to 10per cent, whilst players would be able to set limits on maximum bets or losses over a certain time to help minimize problem gamblers. With the bill set to be voted upon during January there is no clear indication whether Governor Christie will accept the bill, but New Jersey are hoping that they can become one of the first states to offer legalized online gambling.

New Table Games for Omni Casino

Whilst bills and legislation processes continue to rumble in the US as state’s try and push measures to legalize online gambling, Omni Casino has revealed that it is to bring back a number of popular table games. After Black Friday, table games in particular suffered online, with popular land casino games such as poker disappearing from online venues. However, Omni Casino has sought to correct this, revealing that it was bring back Let-Them-Ride, Casino War and Three-Card Poker.

Three-Card Poker

Named Poker Three, three-card poker has returned to Omni Casino. It involves ‘Pair Plus’ and ‘Ante and Play’; two independently played games within the Poker Three game itself. Players can participate in both games at the same time, or choose to play just one, offering interesting gaming whether people are starting out or are seasoned enthusiasts. During Pair Plus, player’s first place wagers before the cards are dealt. If dealt cards then fall into the Pair Plus hand rankings, wagers is won accordingly, with payouts even money for pairs and increasing to 40 to 1 if players receive a straight flush. Meanwhile, the Ante and Play option sees players place an ante wager before the cards are dealt. Players can then fold at this time or place an additional bet by calling. Qualification by the dealer needs a Queen or more, and if the dealer does not have these, the ante wins 1 to 1. If dealers do qualify, payouts are determined on highest rank hands.

Casino War

Casino War is an online casino table game which is easily learned and played. Both the player and dealer draw a card, and if the player card is higher, even money is won. Likewise, if the dealers card is higher, the player wager is lost. However, if the cards are equal, the player can either lose half their bet by surrendering, or go to war. In this exciting component of the game, two cards are once again drawn. If the dealer’s card is higher then both bets are lost. However, if the player’s card is equal to or higher than the dealers, then even money is won on the raise and the original bet is returned.

Table Games Set to Increase

Whilst slots have become a popular pastime for many people due to the unavailability of table games over the past few months and years, table games are once again set to increase as more casinos’ bring the traditional games from land casinos online. With Black Friday becoming an important, but past point in the online casinos history, many venues will be looking to once again start up their table game wagering facilities to draw fans of the games into their online casinos. Meanwhile, with changes in DoJ policy offering means to circumnavigate previous gambling restrictions, and many state’s looking to take advantage, 2012 may see numerous U.S states start offering intrastate gambling opportunities for those wanting to play online.

Slideshow Opening

The public consultation was opened by Buddy Roogow, executive director of the DC Lottery. Providing a 90 minute slideshow, Roogow explained that casino games would only be offered for online purposes within the District of Columbia. Initially, Texas Hold’em, lottery scratch cards, blackjack and bingo would be provided, with gamblers having to register a dedicated bank account for deposits of no more than $250 per week. He added that online gambling would not be allowed over mobile networks, whilst players would have to use their own computers to access casinos. Meanwhile, an annual cap of $13,000 for individual player losses would be set in place. Roogow also highlighted that the development of specific software to target player location would allow officials to ensure that only those within the District could access online casinos, whilst support would also be offered for gambling addicts.

Set Back for Intra State Online Gambling

Meanwhile, there has been a set back for the legislation of intra state online gambling. Massachusetts State Republican Representative Dan Winslow previously added an amendment to a bill which allowed land casinos to seek possibilities for online gambling; an amendment which was passed in the House during September. However, this week the Senate of Massachusetts passed the bill 24 to 14, but didn’t include the altered online gambling addition.

Committee Conference Decision

In such cases where the Senate and the House pass bills which may have discrepancies, a committee conference is normally called to discuss each issue before coming to a rational decision. Winslow continues to highlight that allowing online gambling to operate on an intra state level would create high tech software and regulatory jobs, provide a new revenue source and cater towards the strong demand for Massachusetts online gambling. However, expert opinion has suggested that any eventual committee will not address the online gambling amendment, putting the progression of internet gambling back by many months.

Joint Venture by Avenue Capital and Trump Entertainment

It has been announced that Avenue Capital Group and Trump Entertainment Inc. have already started to prepare for legalization, with the companies filing to establish a joint online venture. Having filed for bankruptcy in 2009, Trump Entertainment was acquired by Avenue Capital Management who now holds a 22per cent stake, whilst 10per cent was retained by Donald Trump in an effort to keep the company name. Executive vice president for Trump Entertainment’s development and acquisitions, Ivanka Trump, revealed that the joint venture would allow the company to become one of America’s largest online gaming firms should legalization go ahead.

Bwin.party Digital Entertainment Making Moves

Meanwhile it has also been claimed that joint chief executive of bwin.party digital entertainment, Jim Ryan, has been sweet talking investors. Currently the world’s largest listed gambling firm for online operations, bwin.party holds two top brands, Full Tilt Poker and PokerStars, which are unlikely to be approved to operate due to their part in gambling fraud uncovered earlier this year. However, Mr Ryan has been pushing the PartyPoker brand; a brand with worldwide recognition which could do well should online poker be legalized.

Gambling Supplier Optimistic for Online Legislation

Finally, gambling supplier Bally Technologies has revealed that it is optimistic that online gaming legislation will go ahead. A new report has revealed that the land based firm has now launched a digital division in an attempt to corner social network, online and mobile platforms ahead of possible legalization. Spokesman for the firm, Mike Trask, said that some of the company’s games were already available for purchase via iTunes. And with many of the top American players placing themselves in an appropriate position to take full advantage of online gambling should it occur, legalization looks to be edging that little bit nearer.

Proposed Regulations

With the Nevada Gaming Control Board looking to keep regulations as tight as possible, chairman of the group, Mark Lipparelli, revealed that software advancements in the recent months and years have made it possible for online gaming to be regulated. Mr Lipparelli explained that, with no clear national legislation being proposed, the board had to maintain a degree of flexibility in the proposals. The draft includes legislation to limit internet wagers when gamblers are playing against each other rather than the house, specifically affecting poker rather than games such as craps or roulette. Meanwhile, it also outlines that online poker operators would be taxed the same rate as casinos across the state.

Software Regulations

There are also to be strict guidelines for software companies offering online poker, even if they are affiliated with an online casino. These include having to go through the same intense scrutiny as official casinos, and operators having to keep five years of details pertaining to every hand played, wagers, and gamblers involved.

Internet Poker Legislation

It is not the first time that online poker has been put forward for legalization by Nevada. However, a previous bill was broken down, the result being that it was deferred to federal government officials. Whilst this does not stop the authorization of internet poker within state boundaries, there is currently no clarification on whether a federal ban would override individual state legislation. Generating more gambling revenue than any other state, Nevada is often seen as a trendsetter in casino regulation. However, it is the District of Columbia who has already legalized internet poker. And with a crackdown earlier this year showcasing a number of top casinos to be embroiled in money laundering and corruption, officials are keen to set tight regulations before the industry takes off.

Online Gambling Trouble

Part of the reason why there is so much indecision and caution over the online poker sector, which is worth an estimated $6 billion, is due to unscrupulous practices noted by previous casinos. Earlier this year Full Tilt Poker, Absolute Poker and PokerStars, three of the largest online establishments, were embroiled in money laundering and fraud charges which caused them to be shut down and gamblers lose out on a considerable amount of money. It is said that companies tricked financial institutions into billions of dollars of transactions; a direct violation of laws created in 2006 to prevent banks from becoming involved in profit from online gambling funds.

New Bills for 2011

However, the American Gaming Association’s chief executive, Frank Fahrenkopf, said that he expected a new bill to be introduced by the close of 2011. Fahrenkopf explained that the industry was closer to federal legislation than ever before, with officials knowing that a decision had to be made. If poker establishments are unregulated, billions of dollars will go untaxed he said, adding that Americans had to use foreign poker sites to continue their passions, leaving them vulnerable.

American Gaming Association’s Position

Whilst Fahrenkopf revealed that there needed to be regulation in the industry, he remained quiet on the current bills, preferring to stay neutral. The association has warmed to the growing push for online gambling, though venues remain at opposite ends of the scale over whether consumers should be allowed to play poker from home on digital devices. Meanwhile, Fahrenkopf also revealed that though a number of proposals had already been submitted, they lacked the elements that the casino industry was looking for and broke away from the current state framework that many were calling for.

Washington Times Feedback

With a large amount of debate still being seen over the issue of online poker, the Washington Times conducted a poll online on public opinion. Whilst 14per cent of those questioned believed that the legalization should not be allowed and 1per cent were undecided, an overwhelming 85per cent of people gave approval to the reform. One respondent in particular voiced views that the online poker industry was allowed in many nations across the world, with the US being the ‘land of the free’ where gambling should be allowed in an online format.

Final Report for Committee of Finance and Revenue

The outcome of the public consultation will not be heard until an official report is offered to Washington DC’s committee of Finance and Revenue. Chief opponent of online poker legislation and committee chairman, Jack Evans, will then give the report further consideration before revealing the outcome.

Strong Opposition Noted

Whilst Mr Evans has been outspoken of his views regarding the legalization of online poker, two Democrat councilors have already made bill introductions to try and stop legislation going through. Phil Mendelson and Tommy Wells have made an attempt to repeal legal areas which would authorize online gambling, with Wells adding that his bill would make the pros and cons of the industry more transparent for both officials and public, offering clear indications of the sector before bills were passed.

Councilor Defends Plans

However, as much as there is strong opposition for the legalization of online poker in Washington DC, there is also much defense. Michael A Brown revealed that though opposition was loud, it wasn’t being noted in large numbers. And with his views that legalization will stop illegal offshore venues and help regulate the industry, there is a strong argument for the online poker industry.

Massachusetts Law

Whilst deemed to be insignificant in the overall terms of online poker amendments, the change was voted into the bill by 123 votes, with only 32 votes against. The Massachusetts Senate will vote next on September 26^th, debating the legislation and ironing out any problematic discrepancies that may exist between bills passed in the Senate and in the House. After propositions have been made and a final draft drawn up, it will be up to Governor Deval Patrick to legalize the bill.

Online Poker Law for Massachusetts

Online poker legislation in the state of Massachusetts will require the official gaming commission to develop a specialized committee to oversee online poker establishments. Individuals will be responsible for creating and analyzing recommendations and models for online poker legislation, with a report due by the close of July 2012. If a positive recommendation is received, online poker can look forward to a prosperous future. However, with new proposals and legalization required after this initial report, Massachusetts may not gain live online poker until late 2013.

Federal Regulation for Online Poker Renewed

Outside of Massachusetts is has been revealed that there have been renewed calls for online poker to be regulated at a federal level. US Attorney Preet Bharara revealed that Full Tilt Poker, one of the operations closed down earlier this year, had been running an international Ponzi scheme estimated to be worth $300m. However, despite federal permission, players have not received their deposits back, even though Bharara stated that over 20 shareholders and owners gained up to $443m profit.

Challenge for Online Poker Industry

The state of online poker remains inconsistent, and whilst amendments are made to bring about the legalization of the industry, the path is long and drawn out. And whilst officials spend time developing and drawing up bills, the challenge for gambling companies will be to keep the prospect of online poker alive.

Rising Support from Influential Players

There is currently a strong movement in the U.S to push through regulations which will allow online poker operations to begin. With a number of influential officials backing plans to develop a new bill, citizens could be enjoying the game online before the end of 2011. Speaker of the House John Boehner, Senator Majority Leader Harry Reid and Senator Jon Kyl have all revealed their support to legalize online gambling operations, helping the industry have increased optimism that the poker bill could be passed.

Industry Support

In addition to the positive affirmations made by politicians, a number of key industry figures have also revealed a changing disposition towards the matter. Many influential characters had been against the legalization of online poker due to the increased competition that the sector would create. However, the publisher of Global Gaming Business, Roger Gross, said that Sheldon Adelson, chief executive of Vegas Sands, had now said that he was willing to go along with changes for regulating online poker which were made at a federal level. Meanwhile, there are ongoing reports that major U.S casino companies such as Caesars Entertainment have already made moves to secure software providers so that, should the bill be passed, online poker can be made as quickly as possible.

Increased Revenue a Popular View

One of the major factors behind the changing view point on online poker legalization is the increased revenue that operations would provide. Officials at both state and federal levels have revealed that increasing income whilst not having to raise taxes was a huge motivator for passing the bill. And whilst it has been mentioned by some that this could lead to a high level of gambling problems noted across the U.S, those awaiting a decision could see online poker legalized in the next few months.