It has been in the news and it is going ahead – Nevada will be the first US state to regulate online poker in the USA. It seems apt that this state, with a largely gambling-driven economy, should be the first. However, the State of New Jersey is home to a similar type of economy (somewhat smaller and newer); and they missed their chance to be the first when Gov. Chris Christie vetoed his states’ attempt at a bill.
Regulations in respect of Nevada will be for intrastate gambling. But could also be the cause of some problems, as the US Department of Justice still considers all forms of online gambling to be illegal. While US states do have a certain degree of autonomy when it comes to the law, the Unlawful Internet Gambling Enforcement Act (UIGEA) is a Federal Act and could still prove contentious for them.
The decision of the Nevada State legislature to move forward with online poker, sees them ahead of any changes in Federal law. Whether they are putting the cart before the horse, only time will tell? This is a historic moment, and they believe it is indicative of the leadership-role that they play in the gaming industry. Never mind the fact that they are years behind the UK and Europe! The cherry on the cake is that only online poker players resident in Nevada will be able to play these games; but, at least it’s a start.
Federal lawmakers have closed down the biggest and best online poker sites; this took place in April 2011. Banks are still not allowed to accept online transactions from gambling sites. One of the eleven accused from poker site closures in April has even plead guilty to “conspiracy to commit fraud” in terms of indictments, on the basis of UIGEA, which were made against the owners of the websites. This is not going to make things any easier for legislators in Nevada. Brent Beckley, the co-founder of Absolute Poker is the first to plead guilty, and could face as much as 18 months prison-time.
In the meantime Nevada is looking forward to welcoming this new industry to their state. It means more revenue will be generated in terms of taxes and other income. Nevada has been receiving a great deal of attention in the news with this new move, and at a recent Las Vegas Internet gambling conference, were referred to as ‘the gold standard of gaming regulation.’
They are the longest existing commercial casino jurisdiction in the USA, having first legalized casino gambling back in 1931. Since then, 21 other US states have followed their lead. Their gross gaming revenue was $10.4 billion in 2010, and they are home to 256 casinos.
Whether the state’s experience in the casino industry means they have the experience to create a regulatory gold standard in online gambling also remains to be seen. According to Mark Lipparelli of the Nevada Gaming Control Board, he receives weekly telephone calls from other US regulators who say, ‘We’re thinking about doing this. What do you think?’ Perhaps 2012 will change the face of online poker for US players and law-makers alike?!
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