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U.S. DOJ Offers A Boost For State Level Online Poker

Many states may start to push for legalized intrastate online poker programs during 2012 in reaction to the recent Justice Department interpretation of the Wire Act. In a recent DOJ memo, the Wire Act should be interpreted as outlawing only sports betting over the phone or internet, and shouldn’t ban poker or other casino games.

Washington, D.C., and Nevada have legalized Internet poker with other states expected to follow as cash-strapped states collectively facing a $32 billion budget gap in the next fiscal year look for revenue.

Gaming analysts believe that at least five states will make a push for legalized online poker this year. This trend could expand quickly as other states in desperate need of tax revenue seek to tap into new revenue sources.

Connecticut’s Governor Dannel P. Malloy says “It is quite clear that Internet gaming is coming to Connecticut. Period. It’s coming,” said Malloy. “We have a stake in protecting that industry.

In conjunction with the new licensing laws put into place in the state, the Wire Act finding makes it seem very likely that Nevada could become an online poker-friendly state by the end of 2012. Other states that have previously debated online poker legislation include California and New Jersey, and both are expected to revisit the debate again this year.

In the case of New Jersey, the state legislature actually previously passed a law that would have allowed for online poker in the state; however, the bill was vetoed by Governor Chris Christie due to concerns over whether such a move would be legal under federal law. That has all changed now thanks to the DOJ. On Monday, January 9, 2012, the New Jersey state Assembly approved a bill to allow Internet gambling for New Jersey residents through Atlantic City casinos.

Other major markets mentioned in the report were New York, where expanded land-based gambling has already been heavily pushed, Iowa, Florida and Illinois.

Interstate online gambling exchanges could also pass legal hurdles. Some lottery programs now allow players from several states to participate, including large jackpot games like Mega Millions and Powerball.

New poker legislation expected in 2012

Filed under: Online Gambling, Online Poker, Poker Law, US Poker — Tags: , , , , — Poker Admin @ 4:17 pm October 6, 2011

Chief Executive Frank Fahrenkopf of the American Gaming Association said Tuesday at the start of an industry conference in Las Vegas that he’s optimistic a new poker bill will be introduced this year.

“We’re perhaps closer to federal legislation than we’ve ever been,” Fahrenkopf told reporters during a news conference. “There’s a buzz in Washington about the need for action.”

The Global Gaming Expo (G2E) continues to gin up expectations that America will finally take the plunge and legalize online poker this year. At a keynote address on Wednesday, MGM Resorts CEO Jim Murren said the time for talking about online poker was over and (wait for it) “the time for action is now.” Sen. Harry Reid (D-Nv) is expected to provide much of the momentum behind any new federal push.

Regardless of whether the Iowa Legislature authorizes Internet poker in the 2012 session, some Iowans are wagering and will continue to wager on online poker games, according to a new report.

About 5 percent of adults reported having gambled on the Internet and 2 percent have done so within the past 12 months, said researchers at the Center for Social and Behavioral Research at the University of Northern Iowa.

State Sen. Jeff Danielson, D-Cedar Falls, chairman of the Iowa Senate State Government Committee, said Tuesday he believes lawmakers have no choice but to seriously consider legalizing Internet poker.

“I believe the technology has gotten ahead of our laws, and if you want to avoid the downsides of some of the economic and social aspects, then you need a thoughtful approach,” Danielson said. “Right now there are billions of dollars leaking out of the U.S. economy and Iowa’s economy to far-away places where we have no idea what the money is being used for.”

There are 100 new members of Congress and the American Gaming Association says not everyone fully understands gaming. It’s why they unveiled an online poker code of conduct at the Global Gaming Expo in Las Vegas. They also formed a coalition and created a wild-west themed video explaining the history of gaming and how Nevada can reap the benefits of it being regulated.

“Americans have always played poker; 150 years ago they played in a risky, anything goes environment.” The American Gaming Association video talks about the swindlers and shady characters who dominated poker and the fact there were no safeguards to protect Americans.

Today, industry leaders say online gambling is popular and the U.S. is losing jobs and billions of dollars to foreign countries because of illegal, unregulated gambling. It’s estimated to generate $30 billion a year worldwide.

Gambling industry seeking new online poker bill

Chief Executive Frank Fahrenkopf of the American Gaming Association said Tuesday at the start of an industry conference in Las Vegas that he’s optimistic a new poker bill will be introduced this year.

“We’re perhaps closer to federal legislation than we’ve ever been,” Fahrenkopf told reporters during a news conference. “There’s a buzz in Washington about the need for action.”

The Global Gaming Expo (G2E) continues to gin up expectations that America will finally take the plunge and legalize online poker this year. At a keynote address on Wednesday, MGM Resorts CEO Jim Murren said the time for talking about online poker was over and (wait for it) “the time for action is now.” Sen. Harry Reid (D-Nv) is expected to provide much of the momentum behind any new federal push.

Regardless of whether the Iowa Legislature authorizes Internet poker in the 2012 session, some Iowans are wagering and will continue to wager on online poker games, according to a new report.

About 5 percent of adults reported having gambled on the Internet and 2 percent have done so within the past 12 months, said researchers at the Center for Social and Behavioral Research at the University of Northern Iowa.

State Sen. Jeff Danielson, D-Cedar Falls, chairman of the Iowa Senate State Government Committee, said Tuesday he believes lawmakers have no choice but to seriously consider legalizing Internet poker.

“I believe the technology has gotten ahead of our laws, and if you want to avoid the downsides of some of the economic and social aspects, then you need a thoughtful approach,” Danielson said. “Right now there are billions of dollars leaking out of the U.S. economy and Iowa’s economy to far-away places where we have no idea what the money is being used for.”

There are 100 new members of Congress and the American Gaming Association says not everyone fully understands gaming. It’s why they unveiled an online poker code of conduct at the Global Gaming Expo in Las Vegas. They also formed a coalition and created a wild-west themed video explaining the history of gaming and how Nevada can reap the benefits of it being regulated.

“Americans have always played poker; 150 years ago they played in a risky, anything goes environment.” The American Gaming Association video talks about the swindlers and shady characters who dominated poker and the fact there were no safeguards to protect Americans.

Today, industry leaders say online gambling is popular and the U.S. is losing jobs and billions of dollars to foreign countries because of illegal, unregulated gambling. It’s estimated to generate $30 billion a year worldwide.

Online Gambling Licensing Bill Approved By Nevada Assembly

Filed under: Uncategorized — Tags: , , , , — Poker Admin @ 12:39 pm May 24, 2011

The state Assembly on Thursday passed a stripped-down Internet gambling bill calling for the state to develop a licensing process for online poker businesses, a month after the U.S. industry melted down amid federal indictments.

The bill, a modified version of previous legislation, would put Nevada in the position to be able to license online gambling operators should the federal government allow regulated online poker or other gambling. The bill instructs regulators to draft rules for licensing in the event that such federal legislation is eventually passed.

“It highlights that there’s a need,” said Assemblyman William Horne, D-Las Vegas, whose committee sponsors the bill. “Where there’s a void of regulation, there’s corruption.”

The Nevada Gaming Commission would be put in charge of any such licensing scheme. The bill calls for rules to be developed by January 2012, and states that any online gambling site to receive a license would be required to have a partnership with a company that holds a non-restricted gambling license – in most cases, a land-based casino company in the USA.

It also stipulates that online sites would need to have a partnership with an existing non-restricted gambling license holder or an affiliate that has been in business for at least five years.

The bill will now move on to the Nevada State Senate, where it is expected to pass without much trouble. Given that the law would only put Nevada in excellent position to act as a licensing system in the case of federal regulations, and does not actually legalize or regulate anything on its own, the provisions of the bill aren’t seen as controversial.

Poker… A Game Of Skill, Luck or Both?

Filed under: Online Poker, Poker Law, US Poker — Tags: , , , — Poker Admin @ 2:52 pm May 6, 2011

Eric Holder, a US Attorney General is of the opinion that the federal shutdown of the poker sites is completely appropriate and is in full support of it. However, he also questions whether poker is a game of skill or chance.

At a hearing at the House Judiciary Committee, Holder stated that there were certain laws pertaining to online poker that had to be enforced. He also claimed that US authorities were doing exactly this when they were dealing with the shutdown of the top three poker sites which were found to be violating US poker laws regarding banking transactions with American financial institutions.

Federal prosecutors in Manhattan recently shut down three of the top US poker sites; Absolute Poker, PokerStars and Full Tilt Poker. They also indicted the founders of these sites for operating illegal businesses, transacting with American financial institutions and for posing as retail operators to regulate these transactions.

However, when Eric Holder was questioned regarding his opinion about poker and asked whether it was a game of chance or of skill he refused to comment on the question. When asked whether Phil Ivey was just lucky, Holder accepted that although he did not know Phil Ivey and was not a poker player he did think there was a certain extent of skill involved in the game.

Federal prosecutors have also recently filed a notification that states why poker should be considered to be a game of chance. This document also supports an agreement with James Davitt, who pleaded guilty to operating an illegal gambling business dealing with Full Tilt Poker to make online payments to poker players.

Adam Holder, a US Attorney General also commented on the issue and stated the onus was on Congress to clarify the meaning of the laws on online poker. However, according to the law, as long as the current laws on internet gambling exist, authorities will have to ensure that they are enforced and executed just the same.

Although the Federal Government seems keen to stick to their stand against US online poker, they may be put into a position where they have to agree that the laws regarding online poker have to be revised and clarified if they do not want this whole matter to be considered a legal mess. Also, for any future US online poker indictments, a clarification regarding the UIGEA law would be required.

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