Online Poker Legislative UpdateA Look at Three States Efforts to Introduce Online Poker Regulation |
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Senator Harry Reid
Though there are reports that Rep. John Campbell has partnered with Barney frank to introduce a House bill that will regulate online poker, it appears that shifting Congressional power towards the GOP will hurt any chance the bill has of getting off the ground. With Arizona Senator and staunch online poker opponent Jon Kyl announcing retirement, only time will tell when another push is made at the federal level to legalize and regulate online poker.
That being said, the push for legislation at the state level remains strong in a few key areas of the country. Here, we get an updated look at what’s happening on the political front lines.
New Jersey
Governor Chris Christie
In addition to poker, the legislation allows for the offering of games such as blackjack, craps, slots, roulette, baccarat and pai gow. According to a study commissioned by the Interactive Media Entertainment and Gaming Association (iMEGA), a New Jersey intra-state gambling system could raise up to $250 million in revenue and bring in an additional $55 million in taxes.
All that left to make it official is the signature of Governor Chris Christie, which would make the bill a law. Joe Brennan, chairman of iMEGA stated in January, “We are very close, tantalizingly close right now and I think within the next month, you will likely see New Jersey become the first regulated iGaming market in the U.S.”
Though most industry experts are optimistic that the bill will become law, Brennan was hesitant to lean one way or the other. “Governor Christie has become the subject of an awful lot of speculation within the industry right now. I would suggest that probably 95 percent of the speculation is probably completely off target. We’ve been most active on this and if you asked me today which way Governor Christie would vote, I would honestly have to say I don’t know with certainty.”
Christie has not publicly commented on the bill, but his 45-day deadline is fast approaching. Should he simply choose to ignore the bill, it will automatically be passed into New Jersey law.
Florida
Rep. Joseph Abruzzo
The current push is for state pari-mutuel facilities to begin to offer online poker through existing third party websites. The facility would then takes it’s cut and the state would earn revenue through the taxes paid on the rake.
According to Rep. Joseph Abruzzo, the bill’s author, regulating online poker in Florida is just one of many ways the state can cut into it’s $3.6 billion deficit.
“It’s common sense,” he said. “There are hundreds of thousands of players in Florida in unregulated and unprotected offshore sites. Why not legalize, regulate and bring in revenue from something that’s already occurring?”
Of course, there are other obstacles to deal with besides the obvious anti-gambling groups. By law, the Seminole Indians are permitted to offer any form of gambling that is legal in the state. The state recently negotiated a compact with the Seminoles to allow them to offer blackjack in exchange for real, uncapped poker. Previously, players were forced to buy-in for no more than $100 in any game. Before that, each bet was limited to just $2.
Should pari-mutuels earn the right to offer online poker through third party sites, the Seminoles would likely do so as well. With less legal loopholes to jump through, they’d probably be the first up and running, hurting the state’s chances for a big tax revenue windfall.
California
Senator Lou Correa
According to the bill, only existing card rooms and California tribal governments in the state would be able to offer iPoker on the state’s only approved network. State residents would be legally allowed to play on the network, as would current California visitors, but allows their winnings to be transferred into a player’s bank accounts.
A second piece of legislation, Bill 45, was introduced by Senator Rod Wright. While Bill 40 focused mainly on online poker, Bill 45 leaves open the possibility for licensing other types of online gambling. If either bill should pass, Californians would be completely cut off from the current off-shore sites that offer poker.
According to an economic impact study, an online poker system in California would earn roughly $1 billion in tax revenue and bring in 1,100 new jobs over the next decade. Though most politicians are in favor of some form of legislation, deciding the specifics of who to include in the carve out is taking longer than initially anticipated.
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