Monthly Archives: October 2012

Pre Election Federal Online Poker Status

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With less than a month to go until the presidential election (when 1/3 of the Senate and all of the House will also be in play) the subject of an online poker bill at the federal level is either heating up or cooling down, depending on one’s perspective. For those expecting a bill to be drafted and acted upon quickly, the process has been mired in political squabbling that only Washington insiders could ever hope to understand. Proponents of federal legislation in Nevada see the window of opportunity to maintain the Silver State’s preeminence in the gambling industry as closing while competing states move forward with their own plans to set up online gambling intrastate.

A spate of recent news seems to indicate that Senate Majority Harry Reid’s poker bill will be teed up during the lame duck session after the election. Politicians’ pet projects often follow this route before they find their way attached to some other, more significant piece of legislation that is likely to pass. This was the strategy employed when online poker legislation was attached to a broader Internet security bill.

Opponents of the bill that have dug into the details argue that the bill actually limits states rights because it includes a ban on any other type of casino gambling online–other than poker. This is a direct result of the involvement of the large casino operators based in Las Vegas. Allowing states to offer any and all types of traditional casino games over the Internet is seen as a mortal threat to brick and mortar casinos. Poker is different, with a completely different demographic and the major casino operators want a piece of this business.

The battles continue to be drawn along very specific lines between the various interest groups. In Nevada, regulators want to maintain the state’s role as the leading authority in all things gambling while Las Vegas based casinos want to establish a dominant position in this potentially lucrative new industry. However, elsewhere around the country, state legislatures, state run lotteries, and Native American casino interests are opposed to the Reid bill. On this particular issue, the lame duck session may prove to be not so “lame”.

zynga gets ready for real money poker

Zynga Adds Online Poker Executive

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Online games giant Zynga is dropping more than a few of its eggs into the online poker basket. We can surmise this because the company recently hired a woman named Maytal Ginzburg as COO of its newly formed gaming division. Ginzburg was most recently Senior Vice President of Regulated Markets for 888 Holdings.

Zynga has experienced some setbacks recently which have been reflected in its declining stock price. Slowing growth in its most popular games and the loss of key executives have taken a toll on the company. Over the last two months, CEO Mark Pincus, has publicly stated the company’s intention to enter the lucrative real money online gaming market and leverage its tremendous user base.

Due to the current illegality of online poker in the United States, Zynga poker will begin its foray into real money gambling in Europe. This may end up being an unfair test for the new venture. The European online poker market is mature and more than one site is well established. Of course there is the behemoth, Pokerstars, which may account for better than 50% of the total number of players online at any one time. Then there are the next two most popular sites, 888 Poker and Party Poker. Point is that there is stiff competition in this market and Zynga might not get significant traction from the get go. Starting off in a young, developing, regulated US market would have made for a much more exciting debut.

We believe that there will be several mergers, acquisitions, partnerships, etc. over the next year in the online poker industry. That activity will intensify as things progress on the regulatory front in the U.S. Zynga will, no doubt, be a much sought after partner given its huge database of players. In April of this year, Forbes reported that the company was in talks with Wynn Resorts to form an online partnership. What a great combination that could be for poker players – Zynga’s worldwide popularity and expertise in social gaming combined with the prestige of the Wynn brand. The most sought after partner out there will be Pokerstars, but there will be other potential alliances similar to Zynga/Wynn that can become formidable competitors. All that competition will ultimately benefit players.