The Full Tilt Poker/GBT deal may finally be nearing a conclusion, while an online poker bill appears to be dead in Iowa. Check out these stories and more and this week's Weekly Industry Update. Full Tilt Poker Update: Will this be the week? Multiple poker news outlets reported this week that the finalization of a Full Tilt Poker deal may finally be nearing completion. GamingIntelligence originally reported that a deal would be completed by March 16th, while EGR reported that the deal is expected to be closed the week ending March 23rd. There have been many moments of false hope since this saga began on April 15th, but it is seeming more and more likely a resolution is near. If the deal is completed, GBT speculated that the site could be live within a month. Hopefully this time next week, we will be one of many reporting on a successful outcome. Bovada Restricts Players from Three States: Two weeks after the seizure of Bodog.com and the indictment of founder Calvin Ayre, Bovada.lv, the U.S. facing brand on the Bodog Network has placed restrictions on four states. Players located in Maryland received word on Tuesday that their accounts would be closed immediately, while new registrations and new deposits were halted for players located in New York, Utah and Washington. The states were blocked because of the difficult legal environment and extra enforcement measures that have taken place in each of the states. Iowa Online Poker Bill Declared Dead: A online poker bill that passed the Iowa Senate by a 29-20 vote last week has been declared dead by Iowa House speaker Kraig Paulsen. There is still time to pass the bill in the House, but Paulsen said he has no plans to progress the bill. Paulsen stated that there was a "general lack of interest" in online poker among the Iowa House. Estimates are that online poker would bring $30 to $60 million in revenue for state-licensed casinos and generate $2.9 million in tax per year. A Sioux City Journal op-ed calls online poker's likely demise in the state a lost opportunity. Playtech Will Apply for Nevada License: Playtech, software provider for the iPoker Network, will apply for a license in the state of Nevada, according to EGR. Spielo and Gtech G2 were also confirmed as applying for licenses in Nevada this week. Over two dozen applicants are believed to have applied for Nevada licenses thus far for the regulated market, which is expected to launch as early as this fall. PokerScout Traffic Update: Online poker traffic dropped again for the fifth straight week, down 1.1%. PokerScout noted that Merge Gaming was one exception in a broad decline, up slightly for the week. Bodog, on the other hand, saw loses of 9% on the week and is now down 13% since the Bodog.com domain name seizure and indictment of founder Calvin Ayre. Meanwhile, Everleaf Gaming is down 25% since they left the U.S. and French market 6 weeks ago. Jottings: New Jersey online poker billed delayed for six weeks...Bodog makes hand histories available...March U.S. Online Poker Processing Report released...Power Poker (Cake skin) bans existing US players...U.S. facing Winning Poker Network unveils $250,000 Black Friday tournament...Bulgaria to regulate online poker, block unlicensed operators...Mississippi online poker bill dead...Matt Damon Poker Documentary trailer released.
Two more states introduce online poker poker legislation while Everleaf releases a statement on their departure from the U.S. market. Check out these stories and more in this week's edition of the PAS Weekly Industry Update. California and Mississippi Introduce Bills: The last week saw two more states join the recent wave of states interested in online gambling. On Wednesday, a bill was introduced in Mississippi by House Minority Leader Bobby Moak. If passed, the legislation would take effect on July 1st. Meanwhile, in California two lawmakers introduced a bill on Friday dubbed the Internet Gambling Consumer Protection and Public-Private Partnership Act of 2012. The Calfornia bill faces obstacles from Governor Jerry Brown and tribal casinos. With over 37 million residents, a passage of a bill in the state would bring regulated poker to over 10% of the United States. Full Tilt Poker Update: Like last week, there were no major developments from Full Tilt Poker. See our update from two weeks ago for the last news on the ongoing situation. I'd also recommend checking out a good blog from Matt Glantz this week that details his opinion of where he sees things after discussions with Full Tilt Poker insiders. The theme: not good. Everleaf Releases Statement: Everleaf broke their silence on Friday with a statement explaining their departure from the US market and commitment to the non-US market. In a follow-up statement released on Friday, Everleaf also reiterated that player funds are segregated from operational are "ring-fenced." Shuffle Master Set to Purchase Ongame: Since June of 2011, bwin.party has been in discussions to sell their "surplus asset" after the two online gambling heavy heavyweights joined forced. According to the Sunday Times in England, a sale of the network to Shuffle Master is at an advanced stage. Shuffle Master is among more than a dozen operators who have applied for licenses in the state of Nevada. PokerScout Traffic Update: According to PokerScout online poker traffic decreased 3% over the week with 9 out of the top 10 sites seeing loses, the second decline in as many weeks. Merge Gaming and Boss Network are two sites mentioned by PokerScout as sites moving up the traffic rankings over the last week. PAS News: RedKings Revenue-share commissions have increased to 35% at PAS. Publishers who generate more than $5,000 in MGR will receive the new rate. Stay tuned for exclusive promotion news coming this week. Jottings: PKR launches .it site...Businessman accused of illegal payment processing...Boyd Gaming says federal legislation could be further off than hoped...Meanwhile, MGM expects online poker federal legislation in 2012...Germany online poker developments...Phil Ivey enters first U.S. tournament since Black Friday.
MGM and Boyd apply for licenses in Nevada and a very fluid Full Tilt Poker situation that leads us do wonder "Will it or Will it Not Happen?" These stories and more are a part of this week's PAS Weekly Industry Update. MGM and Boyd Apply for Nevada Licenses: According to Card Player, Boyd Gaming and MGM have applied for online poker licenses in the Nevada regulated market, increasing the list of interested parties to 12. Other notable applicants include 888, Caesars Entertainments, Bally's, IGT, Shuffle Master South Point Poker and Fertitta Interactive, whose application also came to light this week. The applications are currently under review but there is no indication of when approvals will be made. Mixed Signals with Full Tilt Poker Deal: Over the last two weeks, various sources have reported that the Full Tilt Poker deal may be in trouble due to issues with Chris Ferguson's Full Tilt related accounts and money owed by various poker pros. A lawyer for Chris Ferguson predicted a deal was still on track to be completed in first half of this year, if not the first quarter. He refutes the report from Subject Poker saying that it is "flat wrong" that the Ferguson matter could hold up the deal. Pokeraddict and I shared some thoughts on where we see the current Full Tilt Poker situation. In other news, a federal judge threw out much of the class action lawsuit against Full Tilt Poker. PokerScout Traffic Update: Online poker traffic was down 0.6% over the last week according to PokerScout in their lastest report on online poker traffic. PokerStars was among the biggest losers of the week. PAS News: Unibet MGR and CPA was launched on the PAS Network this week. Unibet MGR publishers can promote a 30% MGR offer where players will receive 30% rakeback. Publishers choosing CPA will receive $100 commissions when a player accumulates 250 Points, the equivalent of $25 in rake. Jottings: Independent poker news site Subject: Poker shuts their doors after eight months, Diamond Flush carries the flame...Caesars Forms Technology Partnership with LBPoker.fr...2012 WSOP schedule released...Iowa online bill could be introduced this month...District of Columbia to repeal online poker bill...888 and Caesars Extend License agreement...Presidential candidate Romney against online poker...Boss Bad Beat Jackpot over $1 million.
We know that Nevada will bring regulated online poker to the state very soon with games possibly only months away. It was also speculated that when the U.S. Department of Justice amended their opinion on the application of online poker to the Wire Act that many states might be compelled to reexamine the prospect of online poker in their states. Indeed, only three weeks after the earth-shattering ruling, a handful of states are already signaling progress or changes in position. It is estimated that the online poker industry is worth billions of dollars a year, and now that the legal position is more clear, regulation efforts are likely to further accelerate. Marketwatch calls it the the online poker gold rush. The New York post says several states could have online poker in the works by the end of the year. Online poker in the U.S. now seems like an eventuality, the beginning of a new era, and potentially a very exciting time to be an online poker affiliate. I imagine we will be covering this topic extensively over the coming weeks and months but I thought for now, I could give readers a run-down of some of recent chatter from state representative since the DOJ’s December 23rd announcement. We certainly can’t count on federal regulation over the next year (generally considered more favorable by the industry vs state regulation) but it appears clear that at least a couple states will be well on their way to intrastate internet poker by the end of 2012. New Jersey - Christie Changes Tune: New Jersey now appears to be on the fast track to moving on online poker. Last year State Senator Raymond successfully passed a bill that was subsequently vetoed by Governor Chris Christie. Lesniak says New Jersey “can be the Silicon Valley of internet gambling.” Now Christie says that he favors regulation and thinks New Jersey should be in the business. Calfornia: It is estimated online poker could bring $1.4 billion to Califiornia over 10 years. Governor Jerry Brown has doubts about that estimate, however. “ I would be skeptical that there are huge amounts of revenue in that, although there certainly could be some.” Connecticut: “It appears that [online] interstate and intrastate gaming is going to be allowed” said Governor Danniel P. Malloy in late December. Because gaming is an important part of the Connecticut economy, online poker could be coming to Connecticut. "It appears that the only thing the Justice Department has ruled is off the table is sports betting. So with that one exclusion, everything is up for consideration by the states.” Maine: Sen. Nichi Farnam, co-chair of a committee that has jurisdiction over gambling issues told the Bangor Daily News, “This is giving us the motivation now to get something in place so that when, or if, this comes to Maine we have regulations in front of us.” Ohio: Ohio Lottery Commission interim director told the Cincinnati Business Courier that the regulator body is exploring internet gambling. “We want to be in the forefront of being able to generate revenue for the lottery commission. But it’s a policy decision that we will not make on our own .” Utah: Utah is one of the few states without any gambling at all and doesn't plan to change that position with internet gambling. Rep. Stephen Sandstrom of Utah says that he will sponsor a bill that would opt Utah out of any federal gambling. “It has a detrimental effect on society. People get addicted to gambling or drugs or pornography. I think it’s completely prudent and constitutional to limit gambling.” Utah isn't the only one against online gambling. Casino companies with much to gain are also coming out against the momentum to regulate. M Resort President is pushing back on regulation by stating he agrees with recent comments by Las Vegas Sands Chairman Sheldon Alelson, who voiced his concerns about online poker last month. “I agree with him 100%, we’re pushing this way too far.” His concerns against internet gambling seem to be related to potential social issues. In the article Marnell acknowledges that he may be on the wrong side of history. He notes that M Resorts is looking at participating in the regulated markets despite his position on the matter. Indeed, it is becoming clear that proponents and opponents of regulation need to prepare for the eventuality of online poker returning in the United States. Not only are the usual suspects involved in the discussion (Nevada, New Jersey) but also some states that have never shown much interest public in regulation. Make no mistake: there is still an uphill battle that many states must face, but maybe online poker on a state level can gain more traction than previously thought given the DOJ's new position on the Wire Act. 2011 was an interesting year that many of us wouldn’t mind forgetting. Let’s hope that 2012 turns out half as good as the optimism is suggesting.
In case you missed it, on Tuesday the House Energy and Commerce Subcommittee held a hearing on online poker legislation in the United States. A list of witnesses included representatives from a variety of mostly pro-legislation organizations including FairPlayUSA and the PPA. The panel also included representatives for various organizations arguing for customer protection: safeguards for problem and underage gamblers and ensuring fairness of games and protection again unregulated operators. The lone opponent of legislation, Ernest Stevens, representing the National Indian Gaming Association, opposes legislation due to a concern on the effects of U.S. American Indian tribal gaming. The 2 hour plus hearing has been posted on CSPAN. Once directed to the page, navigate to the "Hearing on Online Gaming" link on the right. Having seen a lot of these hearings over the years, it was refreshing that the panel testimony focused on making online poker work instead of discussing why it must be stopped. It appears that an increasing number of policy makers are realizing what proponents have been arguing for years: online poker is here to stay and must be regulated and taxed. Summaries on the Hearing: Pokerfuse's Summary of the Testimony The Hill - Online Gambling Finds Support in the House PPA Statement on Hearings Chairwoman of the committee, Rep. Mary Bono Mack, says she plans to hold another hearing on online poker soon but that "to rush [legislation] would be a mistake." Bono Mack suggested that there is just too little time for online poker to be part of the $1.2 trillion deficit reduction package that faces a November 23rd deadline. Proponents of online poker regulation have cited the deficit reduction package as an ideal vehicle for passing legislation this year. If you support the efforts in the U.S. to regulate online poker, the PPA is recommend you throw your support behind H.R. 2366. The PPA has outlined an action plan where you can do your part in a variety of ways, such as contacting your representatives and getting the word out about the crucial need for regulation.
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