Is There New Life for Online Gaming? Good Read

Is There New Life for Online Gaming?

By Travis Hoium | More Articles
March 23, 2011 | Comments (0)


Late last year when the new Republican House was waiting to be sworn in, there was hope around the gambling industry that an online gaming bill might be shoved through before more conservative legislators took over. Well that never happened, and I for one thought it would be at least another two years until we heard about online gaming regulations.
But Nevada may be shimmying its way into online gaming for its state's residents only (wink, wink; nudge, nudge). With PokerStars leading the way, some people are trying to figure out a way to make Nevada the center of future legal online gaming, or so the lobbyists claim. But big gaming isn't behind this localized push, with MGM Resorts (NYSE: MGM ) and Caesars Entertainment both publicly favoring federal regulation. And Nevada regulations may not pass without casino support.
In an odd bit of timing, the online gaming bill that was defeated last year resurfaced just last week, and Senate Majority Leader Harry Reid (D-Nev.) appears to be making another push at it. It doesn't look as if anything is imminent, but the conversation is good for companies like Caesars and MGM, which would be major beneficiaries.
There was also the Gaming Control Board's approval of a relationship between Caesars Entertainment and Cassava Enterprises and Fordart, two subsidiaries of online gaming company 888 Holdings. We don't know exactly what the relationship entails, but you can read between the lines that Caesars wants to have a presence in online gaming. The push for online gaming has started again, and this time more options are opening up.
While Las Vegas Sands (NYSE: LVS ) and Wynn Resorts (Nasdaq: WYNN ) would both get a piece of the online gaming pie, this is really something MGM investors should be cheering for. MGM has more brands, more casinos, and is in much worse financial shape than its competitors. I wouldn't hold my breath for online gaming quite yet, but it's encouraging to see that online gaming may have an effect on casinos sooner rather than later.

Internet Gaming Will Be Legalized at 'Some Point': CEO


Published: Monday, 28 Mar 2011 | 2:56 PM ET

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By: Gennine Kelly
Web Producer, CNBC




A piece of legislation introduced in Congress last week has some investors and gamblers hopeful that internet gambling will be legalized. "There's more money being spent on Internet gaming then the entire Las Vegas strip is generating in casino revenues—pretty amazing number," said Jason Ader, CEO of Hayground Cove Asset Management. Ader also sits on the board of Las Vegas Sands [LVS 42.45 0.63 (+1.51%) ].
"It will happen at some point in the future. I'm not sure if it's this bill, if it's this year, but it doesn't make any sense for this money to be leaving our shores going to other countries without any control or any tax-revenue benefits," Ader told CNBC on Monday.

"You have plenty of Americans who are already playing online. They send money overseas," he added. "Why not regulate it, tax it and enjoy the economic benefit to the states, to the federal government."
The major gaming companies will figure out a way to participate, Ader said. "You saw last week, Wynn Resorts [WYNN 125.71 0.59 (+0.47%) ] making a deal with Poker Stars. Caesar's has been very active.
"The public companies that trade mostly in the UK will team up, and the US operators will have their relationships to benefit from this," he concluded.

If it does get legalized, anything that has Government involvement will be a joke

ESPN is in bed with Poker Stars now.
This is a good thing for the online community.

U.S. Attorney General Calls Online Poker Crackdown Appropriate But Doesn’t Know If Poker Is A Game of Chance or Skill

May. 3 2011 - 1:01 pm | 4 views | 0 recommendations | 0 comments

By NATHAN VARDI
Image via Wikipedia


U.S. Attorney General Eric Holder on Tuesday called the recent crackdown by federal prosecutors on the world’s biggest online poker companies “appropriate,” but also said that he did not know whether poker was a game of chance or skill.
“We have to enforce the law as it exists and there are laws on the books with regard to Internet gambling that we have to enforce,” said Holder at a House Judiciary Committee hearing. “The case that we brought for instance in the Southern District of New York involved pretty substantial amounts of money and big financial institutions and I think those cases are appropriate.”
Federal prosecutors in Manhattan recently declared war against the world’s biggest online poker companies, PokerStars and Full Tilt Poker, shutting down their operations in the U.S. and indicting their founders for operating illegal gambling businesses and conspiring to commit bank fraud.
But Holder tried to fold when he was asked if he thought poker was a game of chance or skill, saying it was “beyond my capabilities” to weigh in on an issue that is fundamentally connected to the Department of Justice’s position that online poker violates U.S. law.
Federal prosecutors in Maryland recently filed a legal memorandum in federal court outlining an argument for why poker was a game of chance in order to support an agreement they reached with James Davitt, who pleaded guilty to operating an illegal gambling business in connection with arrangements Davitt made with Full Tilt Poker to make payments to online poker players.
“Do you think Phil Ivey is just lucky, he is the world’s greatest poker player?” asked Democratic Representative Steve Cohen of Tennessee.
“I am not sure I know who Phil Ivey is, but I am sure there is some degree of skill that is involved, some degree, I am not a poker player myself,” Holder replied.
Holder said it’s up to Congress to clarify the laws on online poker, but added that the Justice Department will enforce the law as it currently exists. He said the Justice Department’s criminal division in Washington D.C. did coordinate with the prosecutors in Manhattan who brought the recent action against the online poker industry’s biggest players.

home of the free....

Paying taxes would suck.