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We know that Nevada will bring regulated online poker to the state very soon with games possibly only months away. It was also speculated that when the U.S. Department of Justice amended their opinion on the application of online poker to the Wire Act that many states might be compelled to reexamine the prospect of online poker in their states. Indeed, only three weeks after the earth-shattering ruling, a handful of states are already signaling progress or changes in position. It is estimated that the online poker industry is worth billions of dollars a year, and now that the legal position is more clear, regulation efforts are likely to further accelerate.
Marketwatch calls it the the online poker gold rush. The New York post says several states could have online poker in the works by the end of the year. Online poker in the U.S. now seems like an eventuality, the beginning of a new era, and potentially a very exciting time to be an online poker affiliate.
I imagine we will be covering this topic extensively over the coming weeks and months but I thought for now, I could give readers a run-down of some of recent chatter from state representative since the DOJ’s December 23rd announcement. We certainly can’t count on federal regulation over the next year (generally considered more favorable by the industry vs state regulation) but it appears clear that at least a couple states will be well on their way to intrastate internet poker by the end of 2012.
New Jersey - Christie Changes Tune: New Jersey now appears to be on the fast track to moving on online poker. Last year State Senator Raymond successfully passed a bill that was subsequently vetoed by Governor Chris Christie. Lesniak says New Jersey “can be the Silicon Valley of internet gambling.” Now Christie says that he favors regulation and thinks New Jersey should be in the business.
Calfornia: It is estimated online poker could bring $1.4 billion to Califiornia over 10 years. Governor Jerry Brown has doubts about that estimate, however. “ I would be skeptical that there are huge amounts of revenue in that, although there certainly could be some.”
Connecticut: “It appears that [online] interstate and intrastate gaming is going to be allowed” said Governor Danniel P. Malloy in late December. Because gaming is an important part of the Connecticut economy, online poker could be coming to Connecticut. "It appears that the only thing the Justice Department has ruled is off the table is sports betting. So with that one exclusion, everything is up for consideration by the states.”
Maine: Sen. Nichi Farnam, co-chair of a committee that has jurisdiction over gambling issues told the Bangor Daily News, “This is giving us the motivation now to get something in place so that when, or if, this comes to Maine we have regulations in front of us.”
Ohio: Ohio Lottery Commission interim director told the Cincinnati Business Courier that the regulator body is exploring internet gambling. “We want to be in the forefront of being able to generate revenue for the lottery commission. But it’s a policy decision that we will not make on our own .”
Utah: Utah is one of the few states without any gambling at all and doesn't plan to change that position with internet gambling. Rep. Stephen Sandstrom of Utah says that he will sponsor a bill that would opt Utah out of any federal gambling. “It has a detrimental effect on society. People get addicted to gambling or drugs or pornography. I think it’s completely prudent and constitutional to limit gambling.”
Utah isn't the only one against online gambling. Casino companies with much to gain are also coming out against the momentum to regulate.
M Resort President is pushing back on regulation by stating he agrees with recent comments by Las Vegas Sands Chairman Sheldon Alelson, who voiced his concerns about online poker last month. “I agree with him 100%, we’re pushing this way too far.” His concerns against internet gambling seem to be related to potential social issues.
In the article Marnell acknowledges that he may be on the wrong side of history. He notes that M Resorts is looking at participating in the regulated markets despite his position on the matter.
Indeed, it is becoming clear that proponents and opponents of regulation need to prepare for the eventuality of online poker returning in the United States. Not only are the usual suspects involved in the discussion (Nevada, New Jersey) but also some states that have never shown much interest public in regulation. Make no mistake: there is still an uphill battle that many states must face, but maybe online poker on a state level can gain more traction than previously thought given the DOJ's new position on the Wire Act.
2011 was an interesting year that many of us wouldn’t mind forgetting. Let’s hope that 2012 turns out half as good as the optimism is suggesting.