Atlantic Internet Group Corp (ATIG) Announce Tribal Intranet Gaming

Nevada based ATIG have revealed that they have launched an intranet gaming network within some of their tribal casinos. In what is believed to be the first instance of legal intranet gambling in North America, the Louisiana based Coushatta Indian Casino and the California located Coyote Valley Casino have signed agreements with ATIG for joining the network.

Tribal Gaming Network History

First founded in 2009, the Tribal Gaming Network was allowed to go ahead after the National Indian Gaming Commission authorized operations to go ahead. The gaming network itself offers a wide variety of games after ATIG worked alongside some of the leading online gaming suppliers to offer a range of online, Class III and Class II titles. This means that those using the network can access online live dealer games, simulated sports betting, virtual horse racing, slot titles, table games and nationwide poker. In addition, the Tribal Gaming Network is only the second provider to offer gamers access to a Lotto product using a Powerball theme.

Tribal Gaming Falls Outside of Online Gambling Regulations

Strictly speaking, the Tribal Gaming Network falls outside of regular online gambling regulations because, in order to access the network, players must actually be physically present in a casino which is connected to the intranet. Once players are within a casino, they can access ATIG’s gaming platform in a number of ways, including via kiosks, slot machines, Samsung Tablets and Android mobile phones. A few of the network’s games can even be played on Apple’s iPhone. This means of access has been described by ATIG as a casino within a casino, and the company has said that it could offer a prosperous future in server-based gambling.

ATIG Leads the Move towards Legitimate Online Gambling

Alongside ATIG, many casino companies have been preparing for online gambling legislation for a number of years, producing play-for-free and play-for-fun websites which could be turned into real money websites in the future. ATIG has been producing such websites since 2003 and is now said to be the leader in the march towards online gambling. The Tribal Gaming Network, whilst operating on an intranet, allows for real money wagering on all titles and games apart from bingo, and could be seen as a crucial company for others to reflect upon online gambling success.

Utah Look to Ban Online Gaming

However, whilst the Tribal Gaming Network has managed to exploit a loophole in online gambling, many American states continue to see conflict between those who want to allow the online enterprise and those who want to stop it from occurring entirely. The latter opinion is the case in Utah, where Republican Representative Stephen Sandstrom is seeking a total ban on online gambling even if future federal laws allow it. His latest bill, HB108, was held to a vote on February 21^st, 2012, with 61 in favor and 9 who were opposed. With the bill now passed in the House, it will go for Senate approval and, if being passed at this higher level, could ban online gambling within the state indefinitely, even if national legislation comes into force at a later time.

HB108’s Opt-out Clause

Many of the opponents against the HB108 bill being passed argued that because federal legislation will have to include an opt-out clause, there would be no need for such an individual Utah bill. However, USA Congress running candidate Sandstrom countered the attack by saying that opt-out clauses normally had a 60 day period, after which time the moment to decide against national legislation would be missed. With unforeseen delays possibly acting upon the opt-out opportunity, his HB108 bill would safeguard against a situation where legalized online gambling could come to the state of Utah by default. If the bill is passed by the Senate, Washington DC will be immediately informed that Utah will play no part in future online gambling even if federal approval is made. And, with the region already banning all forms of gambling under its state constitution, it is likely that the Senate will pass the upcoming bill.

Iowa Faces Public and Official Dispute

Whilst Utah may see its officials campaigning against online gambling, the opposite is true in Iowa where it has been found that it is members of the public who are not in favor of legalizing the online enterprise. On February 20^th, 2012, lawmakers in the state passed a bill at Senate sub-committee level, providing the foundations for online poker websites to be established that would be regulated in the same fashion as casinos based in bricks and mortar venues. However, a poll of 800 adult residents in the state of Iowa discovered that 69per cent of people don’t actually want online gambling to be given the go ahead; a very similar figure to a survey taken in February 2011 which showed that 73per cent of citizens were against online gambling legislation. Meanwhile, 28per cent said that they were in favor, whilst 3per cent said that they were undecided.

Second Thoughts for Washington’s Councilor Brown

Finally, in Washington DC, it has been revealed that Councilor Michael A. Brown seems to be showing uncertainly regarding trying to bring about another bill to allow online gambling. A bill has already been passed on the issue which was then later repealed after officials said that it had managed to sneak through by default. Whilst Brown was one of the lead officials in getting this bill passed, it has now been reported that he feels Congress will bring fresh attempts to block an online gambling bill should he create one, leading to many believing that Washington DC too will not allow online gambling to occur in the near future.

Problems with Regulation

You might be surprised at the support internet gambling has garnered in recent times.  Several local governments are taking a closer look at existing laws while even some officials on the federal level are openly exploring ways to effectively regulate the industry.  In the state of Nevada, regulation and full legalization all rests on the shoulders of the Gaming Control Board and Gaming Commission, the two entities that would be responsible for adopting and enforcing the new provisions.  Unfortunately, there are currently three major roadblocks within the existing state legislation that might cause problems.

1.)  The first hurdle is the United States Department of Justice, an agency that would need to give Nevada regulators the green light and also one that is adamantly against online gambling.

2.) Second and very important, regulators would have to ensure virtual gambling technology that provides a reasonable level of protection to prevent minors from participating or stop online gambling in locations where the act is illegal.

3. Finally, regulators would have to make sure that internet gambling is consistent with the state’s public policy of maintaining the stability and success of Nevada gaming.  This is perhaps the biggest concern of all.

In 2001, a Nevada law was passed that authorized the state to at least explore the possibility of online gambling regulation. Now however, it looks as if legislators are holding back and observing the action of their neighbors.

America’s Online Gambling Capital?

California, the most popular state in the country and home to one of the world’s biggest regional economies, is currently lobbying strong for the regulation of online gambling.   The state is trying to leverage a sizable loophole in the UIGEA that will allow internet wagering to be legislated and fully regulated.  Due to its aggressiveness, many experts are predicting that California will eventually hold the title of America’s online gambling capital while Nevada sits back and watches.  There is a lot of tax revenue to be generated so if California succeeds, others will likely follow suit.

Probable Regulations

The regulations proposed by NGB imply that South African citizens who want to gamble online will need to open an account with a local bank, an account which can only be used for online gaming endeavors.  Players are only allowed to make payments via credit card and their accounts must continue to abide by requirements of traditional banking standards and the Financial Intelligence Centre Act.  The NGB says that it will work collectively with banks to monitor accounts, stating the players will not be allowed to have more than R20000 in their accounts at any time.  The Board intends to issue ten licenses to South African operators that have their servers located in the country.  That is when, and if regulation is ever achieved.   Online gambling is naturally a hard sector to administer and industry regulation has been chaotic and disorganized across the board.  For now, lawmakers in South Africa are hoping that they can at least bring some level of control to their sector of the industry.

Guidance in Antigua Barbuda

In efforts to make their online gambling regulations a success, South African authorities have turned to Antigua Barbuda, hoping to leverage the expertise of this efficiently regulated jurisdiction and use it as a measuring stick.  Last year, South Africa implemented a remote gambling legislation, creating a framework for licensing and a body that would serve as the regulatory regime.  The country is now focused on regulating the industry and following through on enforcement of the law’s operational provisions.  It looks to Antigua Barbuda for some much needed guidance on how to accomplish in the best possible way.

Last month, members of the South African NGB spent a week in Antigua Barbuda sharing ideas with the FSRC’s (Financial Services Regulatory Commission) Division of Gaming.  The NGB carries a lot of respect for the FSRC which has nearly 15 experience in the field of online gambling regulation.  What they left with was the confidence and knowledge of being able to put effective regulations in place for the country of South Africa.

The Challenge Ahead

South Africa has a large battle on its hands as it must determine how to regulate foreign gambling operators and ensure that local operations remain competitive.  This is a significant issue as there are a large number of sites based offshore that receive much lower tax rates while benefitting from the business of South African players.  At this point, nothing has been etched in stone and operators like Silversands continue to profit because there are still no regulations or comprehensive legislation in place to stop them.

Cindy Doright, spokesperson for the Church of God and Morals, remarked that gambling addicts would be better protected if online gambling was regulated, even though the organization believes strongly that the act of gambling is morally wrong.

The study was completed with the aid of a control group consisting of 25 Christian participants.  Each person was assumed to have been gambling addicts for more than ten years.  The participants were allowed to gamble on the internet with real money.  The catch was that all of their deposits and playing activity would be monitored by leaders of the church.  Their bookies, who are all loyal members of the Church of God and Morals, were also contacted to play a part in the process.  The bookies agreed not to accept any bets from the 25 Christians.  Finally after two years, the study concluded that none of the members from the control group developed any more gambling habits than they already had.  To top things off, 24 of the 25 participants quit gambling entirely.

One of the gamblers who was monitored reported that the increased monitoring actually kept him from being able to hide that fact that he was gambling.  In turn, this particular individual was far more conscious of his habits than in past times when dealing with the local bookie.  From there, the participant came out to admit that they didn’t want to be known as someone with a gambling problem.  Additionally, since he couldn’t deal with the neighborhood bookie, he just stopped gambling altogether.

While the study was conducted in a rather unusual manner and involved an insignificant number of the gambling population, the Church of God and Morals took upon themselves to send a letter to Congress to report the findings, which appears to believe it is more than a viable source to use as the basis for creating new legislation.

One Congressman the church contacted replied that since the religious group put the results in writing, he believes the findings to be true.  The fact that internet gambling regulation showed notable benefits yet was still opposed by the church from a moral aspect, seemed to be weigh heavy on the Congressman.  Upon being asked if he would look further into the subject by possibly viewing more scientific studies, the Congressman expressed that he wouldn’t.  According to Cindy Doright, he said the findings corresponded to his personal beliefs and therefore, it would be no need to look at any more factual documents.

Could a simple church study be the break online gambling proponents have been looking for?  Only time will tell.

Billions up for Grabs

The online gambling industry is flourishing to say the least.  In fact, the market has globally generated more than four billion dollars in the past two years alone.  Keep in mind that these revenues were garnered with very little participation from the U.S., which has pretty much been isolated from the market since the implementation of the UIGEA in 2006, a legislation that some online gambling proponents are calling the Unlawful Internet Gambling Enforcement Act.  Observers are projecting that the online gambling industry will exceed $15 billion by 2012.  That is, with or without the participation of the U.S.  A recent study released by Price Waterhouse Coopers shows that the United States has the potential to rake in at least $8.7 billion and up to $17.6 billion in as little as 10 years.  That is, if Congress decided to legalize, tax and regulate online gambling.  The study hints that if all U.S. states got onboard, a whopping $33.9 billion in taxes would be collected over the next decade.  Considering the current economic state, this seems like a move U.S. lawmakers should seriously considering.

So, what is the United States Congress waiting for?  Well, in their defense, there are still a number of aspects that would need to be addressed in order for online gambling to be regulated in an effective manner.  Some of these issues include age verification to prevent underage gambling, policing rogue and black market casinos, and the fear of compulsive gambling among others.  However, just as the nation has done with the prohibition of alcohol, which actually shares many similarities with internet gambling including an economic crisis at the time, there is a way around these issues if U.S. lawmakers could just see the big picture.  Just as alcohol proved to be a lucrative business in the way of taxes, online gambling could be the same and breath life into an economy that is obviously struggling.

The Bottom Line

The factor of the matter is as simple as this: the UIGEA remains unclear to this day and was a terrible idea from the start.  Anyone looking at the situation with a clear head would agree that it needs to revoked and quickly.  While there may be bigger fish to fry in terms of health care, education and national security, it wouldn’t hurt for the Obama administration to take a closer glance at the state of online gambling and its potential as a huge generator for future tax revenues.  Alcohol prohibition proved that it can be done and because of that, sensibly regulating online gambling should be a heightened priority.