Online Casino Gambling

The first of eight public consultations regarding the legalization of online gambling has occurred in Washington. Held in Ward 5, the overall opinion for online gambling was positive, though residents showed displeasure at the means with which the most recent bill was passed due to Michael A. Brown, an independent councilor, having pushed the legislation through as an attachment to a budget measure.

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.

Over the past few weeks the legislation process for allowing the legalization of online gambling in the U.S has had a lot of coverage. With high expectations that it is only a matter of time before online gambling will be allowed, a number of the big U.S casinos are readying themselves to open as soon as bills are passed.

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.

After lawmakers in the state of Nevada revealed that online gambling may be legalized, regulators in the county have developed new rules which will govern the industry should it arise. The latest bill session saw officials set a January deadline for the Nevada Gaming Commission to have proposed rules in place. And with the online gambling community needing to be regulated and licensed, lawmakers are keen to ensure that proposed rules are watertight.

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.

Experts in the commercial casino industry have called for officials to supersede their planned proposals for online gambling regulation, instead putting in place legislation to allow each individual U.S state to make licensing decisions. This would allow each state to decide whether or not to allow online gambling, and would require each online casino to have a specific license for online operations.

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.

As much of the United States prepares to undergo reform over online poker laws, Washington DC is set to push new bills through as officials start public consultation on the law changes. In this initial phase the eight city wards will all be involved, with members of the public having the chance to provide feedback on proposed laws and mechanics for implementing the online poker sector.

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.

With online poker legislation gaining steam as an increasing number of officials urge for the gambling niche to be allowed, it has been revealed that in Massachusetts an amendment to an online poker bill has been passed. Whilst a long road still lays ahead for the legalization of online poker, the fact that changes are being made is being welcomed by many.

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.