Washington, D.C., first to approve Internet gambling
Washington, D.C., first to approve Internet gambling BY ERIC TUCKER Associated Press pressofAtlanticCity.com | 0 comments
WASHINGTON — The District of Columbia is becoming the first U.S. jurisdiction to allow Internet gambling, moving ahead of traditional gaming locations such as New Jersey and Nevada in a bid to bring in millions of dollars in extra revenue.
Permitting the online games was part of the 2011 budget and a 30-day period for Congress to object expired last week, said D.C. Councilman Michael A. Brown, who authored the provision. The gaming would be operated by Intralot, a Greece-based company, and would be available only to gamblers making bets within the borders of the district.
Officials were not sure when the gaming would begin. Although other states have contemplated legalizing online poker, experts said the district would be the first jurisdiction in the country to do it.
New Jersey Gov. Chris Christie vetoed legislation March 3 that would have allowed New Jersey to become the first state to have Internet gambling. The bill would have permitted New Jersey residents to bet over the Internet using a casino-operated network of computer terminals across the state. Christie vetoed the measure because he believed it would have broken New Jersey’s constitutional limits that confine casino gambling to Atlantic City.
Dennis Gomes, chief executive officer of Resorts Casino Hotel, expressed hope that D.C.’s Internet gambling initiative will nudge Christie into reconsidering online wagering for New Jersey. Gomes said he believes it is inevitable that other states will soon approve their own systems for Internet gambling.
“We’ve got to get it here. This is just the beginning of other states getting it,” Gomes said in an interview with The Press of Atlantic City. “We’re going to lose the advantage of being at the forefront of this issue.”
Following Christie’s veto, New Jersey lawmakers said they planned to work with the governor on a revised Internet gambling bill that would address any of Christie’s legal concerns. Kevin Roberts, a Christie spokesman, did not return a message Tuesday seeking comment.
Meanwhile, the move to legalize online wagering in D.C. comes despite a 2006 federal law that effectively banned Internet gambling. It made it illegal in the state where the transaction takes place by prohibiting banks and credit card companies from making payments to gambling websites. But gambling experts say the law created gray areas that open the door for an expansion into the multibillion-dollar industry.
D.C. hopes to tap those millions to help offset budget cuts and help social-services programs, Brown said. Conservative estimates from D.C.’s chief financial officer indicate the district could bring in about $13 million to $14 million through fiscal year 2014, he said.
The gambling green light is no doubt good news to poker players, but D.C. would be authorized to offer other games of both skill and chance. It would be up to lottery officials to come up with regulations and decide which games to permit.
“Anytime you’re cutting budgets and you want to save some programs, you’re looking for different pieces from different pots and you hope that you get to the number that restores those budget shortfalls and that’s what we’re trying to do with this,” Brown said.
Jeff Ifrah, a lawyer who represents online poker companies, said he was dubious about any revenue estimates since they naturally assume that online poker players will migrate from their favorite site to a new one endorsed by a particular state.
“Players are really loyal in this industry,” Ifrah said. “You really have to ask yourself what is the incentive a player is going to have to leave a trusted site with global competition to play in a site that’s untested and kind of unknown and doesn’t offer you the same level of play.”
Online poker games generally allow computer users to deposit money into an account and place wagers against other players similar to real gambling.
Efforts to legalize Internet gambling have stalled elsewhere this year. Bills in Hawaii and Iowa died in the Legislature. In Nevada, lawmakers have been debating proposals to require state gambling regulators to create rules for Internet poker operations and companies that make related equipment.
David Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, said he thought states were waiting for clearer federal guidance before moving forward.
“There’s a lot of ambiguity at the federal level,” he said. “A lot of people are waiting for some sort of federal legislation that would create a regulatory structure.”
A spokeswoman for the U.S. Justice Department, which has traditionally viewed Internet gambling as illegal, declined to comment Tuesday.
D.C. Mayor Vincent Gray said Wednesday that he did not know how far along the process was but added, “Assuming it’s implemented, it would become a part of our lottery program and could generate additional resources for the District of Columbia as we continue to support ourselves.”
Washington, D.C., first to approve Internet gambling BY ERIC TUCKER Associated Press pressofAtlanticCity.com | 0 comments
WASHINGTON — The District of Columbia is becoming the first U.S. jurisdiction to allow Internet gambling, moving ahead of traditional gaming locations such as New Jersey and Nevada in a bid to bring in millions of dollars in extra revenue.
Permitting the online games was part of the 2011 budget and a 30-day period for Congress to object expired last week, said D.C. Councilman Michael A. Brown, who authored the provision. The gaming would be operated by Intralot, a Greece-based company, and would be available only to gamblers making bets within the borders of the district.
Officials were not sure when the gaming would begin. Although other states have contemplated legalizing online poker, experts said the district would be the first jurisdiction in the country to do it.
New Jersey Gov. Chris Christie vetoed legislation March 3 that would have allowed New Jersey to become the first state to have Internet gambling. The bill would have permitted New Jersey residents to bet over the Internet using a casino-operated network of computer terminals across the state. Christie vetoed the measure because he believed it would have broken New Jersey’s constitutional limits that confine casino gambling to Atlantic City.
Dennis Gomes, chief executive officer of Resorts Casino Hotel, expressed hope that D.C.’s Internet gambling initiative will nudge Christie into reconsidering online wagering for New Jersey. Gomes said he believes it is inevitable that other states will soon approve their own systems for Internet gambling.
“We’ve got to get it here. This is just the beginning of other states getting it,” Gomes said in an interview with The Press of Atlantic City. “We’re going to lose the advantage of being at the forefront of this issue.”
Following Christie’s veto, New Jersey lawmakers said they planned to work with the governor on a revised Internet gambling bill that would address any of Christie’s legal concerns. Kevin Roberts, a Christie spokesman, did not return a message Tuesday seeking comment.
Meanwhile, the move to legalize online wagering in D.C. comes despite a 2006 federal law that effectively banned Internet gambling. It made it illegal in the state where the transaction takes place by prohibiting banks and credit card companies from making payments to gambling websites. But gambling experts say the law created gray areas that open the door for an expansion into the multibillion-dollar industry.
D.C. hopes to tap those millions to help offset budget cuts and help social-services programs, Brown said. Conservative estimates from D.C.’s chief financial officer indicate the district could bring in about $13 million to $14 million through fiscal year 2014, he said.
The gambling green light is no doubt good news to poker players, but D.C. would be authorized to offer other games of both skill and chance. It would be up to lottery officials to come up with regulations and decide which games to permit.
“Anytime you’re cutting budgets and you want to save some programs, you’re looking for different pieces from different pots and you hope that you get to the number that restores those budget shortfalls and that’s what we’re trying to do with this,” Brown said.
Jeff Ifrah, a lawyer who represents online poker companies, said he was dubious about any revenue estimates since they naturally assume that online poker players will migrate from their favorite site to a new one endorsed by a particular state.
“Players are really loyal in this industry,” Ifrah said. “You really have to ask yourself what is the incentive a player is going to have to leave a trusted site with global competition to play in a site that’s untested and kind of unknown and doesn’t offer you the same level of play.”
Online poker games generally allow computer users to deposit money into an account and place wagers against other players similar to real gambling.
Efforts to legalize Internet gambling have stalled elsewhere this year. Bills in Hawaii and Iowa died in the Legislature. In Nevada, lawmakers have been debating proposals to require state gambling regulators to create rules for Internet poker operations and companies that make related equipment.
David Schwartz, director of the Center for Gaming Research at the University of Nevada, Las Vegas, said he thought states were waiting for clearer federal guidance before moving forward.
“There’s a lot of ambiguity at the federal level,” he said. “A lot of people are waiting for some sort of federal legislation that would create a regulatory structure.”
A spokeswoman for the U.S. Justice Department, which has traditionally viewed Internet gambling as illegal, declined to comment Tuesday.
D.C. Mayor Vincent Gray said Wednesday that he did not know how far along the process was but added, “Assuming it’s implemented, it would become a part of our lottery program and could generate additional resources for the District of Columbia as we continue to support ourselves.”
