Why Nevada Should Lead…the new era of online poker
Even though most in the online poker industry, poker sites and players alike, desire full fledged federal laws to govern the industry, the reality is that it is just not going to happen in the short term. Online poker initiatives at the federal level, such as the language that senate Majority Leader Harry Reid tried to add to a tax bill last year, have stalled. There isn’t a lot of broad national support for this type of legislation.
2012 being a presidential election year makes things even more difficult since a majority of the electorate either: a) doesn’t care; or b) is morally opposed to any type of gambling. So politicians don’t see a benefit in taking up the cause. Another headwind is created by all of the competing interests that are opposed to the expansion of gaming online in general. These range from Indian tribal casino operators to state lotteries. These are just some of the reasons why many observers, including this author, contend that successful implementation at the state level in Nevada (and then possibly New Jersey) will serve as a catalyst for federal legislation. So intrastate online poker will be rolled out first.
Earlier this year Governor Brian Sandoval ordered the long dormant Gaming Policy Committee to convene on the issue of online gaming, specifically poker. The committee is made up of: the governor, the chairmen of the Gaming Control Board and the Nevada Gaming Commission, various gaming executives, and members of the state legislature. The stated goal is to address the changing landscape of gaming in general and the effect of new technologies on the industry. One of the first statements attributed to the governor to come out of the committee proceedings dealt with the absolute need to protect players and prevent underage gambling. For now, the new interactive gaming regulations are limited to poker.
Probably the strongest argument as to why Nevada should lead focuses on its expertise in gaming. It’s a fact that no place in the world has more experience in regulating and hosting a thriving gaming industry. The existing regulatory framework and enforcement infrastructure can be modified and expanded to deal with all of the new aspects and challenges of maintaining a vibrant, controlled and fair online gaming industry. In fact, through its Gaming Control Board, Nevada has already demonstrated the need for technological innovation by setting standards for “independent testing labs”. The state regulators will outsource the testing and compliance of high tech software and platforms to these private companies which must demonstrate and maintain strict standards. This preeminence in the field will ultimately lead to compacts with other states and the beginning of interstate poker–leaving the administration and regulation of the industry in the capable hands of the Silver State.
Check back soon – ameripoker.com will publish comprehensive articles that look at the different important parts of the new interactive gaming regulations.
It makes sense, also, that the largest and most successful casino companies in the world would want to have a presence in online gaming. Las Vegas is home to these companies that view online poker as both a new source of revenue and a new channel to acquire and serve customers. The proposed regulations stipulate that applicants for interactive gaming licenses must be current casino license holders in the state or be affiliated with a license holder.
Large casino brands are significant factors and players will benefit from doing business with large, public companies rather than shady off-shores. The requirement of a reserve fund to protect players’ accounts is one of many safeguards called for in the legislation. Other significant items include protections against underage gambling and the availability of resources for people with gambling problems.
The Poker Players Alliance and established international poker sites are pushing for federal laws to govern online poker and would like to avoid a scenario where states all have their own set of regulations. In a perfect world, laws at the federal level would create the conditions for sites to compete on the national stage – with players ultimately choosing their preferred site to play on.