internationalcasinoreview Comment
Not everyone will be a winner
After years of a ban, the impending dramatic expansions of legal internet-based gambling in the United States will be a bonanza for some and a disaster for others. Prof I Nelson Rose explains why tribal gaming could lose out and why there will be many politically motivated decisions about who get the precious licences.
statesaims COMMENT
As a completely unexpected gift to the states, announced two days before Christmas, the US Depart- ment of Justice (DoJ) declared that states are now free to legalise almost every form of internet gambling, and not be worried about federal laws. The reason was the declaration by the Barack Obama administration that the major federal anti-gambling statute, the Wire Act, applies only to bets on sports events and races. State legislators and governors are
desperate to find ways to raise revenue without raising taxes. Gam- bling is seen as a painless tax, so every state is looking into expanding legal gaming. They can now do so. This might not have been the intent - the ruling dealt with state lottery subscription sales - but the result will be an explosion of poker, instant lotteries and casino games on the internet, run or licensed by the states. And, although the DoJ was careful to say the opinion is limited to intra-state gambling, there is now
nothing stopping states from enter- ing into compacts for online gam- bling with other states, and even foreign nations. Many Indian tribes, especially those with established land-based gaming operations, are worried that they might not be included in this coming proliferation of state-oper- ated and -licensed internet gam- bling. And they have every reason to worry.
Although tribes have the right to
operate any form of gambling per- mitted under the laws of the state where the tribe is located, it seems likely that courts would limit that right to patrons who are physically on Indian lands. Tribes are not pro- hibited from taking bets from throughout a state but that would be a privilege granted by a state, not a right. This puts tribes in the posi- tion of having to compete for a limited number of internet gam- bling licences, to be issued by not always friendly state governments. The political fights will be over
who gets the licences. There is so much legal gambling in the US that it
Prof I Nelson Rose is the author of Gambling and the Law and one of the world’s most respected
commentators
is easy for politicians to say, “We’ve already got casinos, racetracks and a state lottery. What’s the big deal about internet poker?” Of course, there is so much legal gambling in the US that those casino and race- track owners, and even the state lottery, will respond, “Internet poker is fine, as long as we get to run it.” Giving the exclusive right to inter- net games to the state lottery might bring in more money in the long run, but the states are desperate for cash, now. Only outside companies, like Caesars Entertainment, can come up with the $100m (E75m) or so the state will want up front. But California’s long-established and politically powerful card clubs and tribal casinos will not quietly accept an outsider setting up a competing
operation that brings legal gambling into every home in the state. Still, there is so much money at stake that political deals will be made. In states like Nevada and New Jersey, where the local operators are the big money, the land-based casino companies will get the internet gam- bling licences. But Nevada will prob- ably not license true internet casino games, as long as the state’s brick and mortar casinos fear the compe- tition. In states like California, local operators will get a licence or two, but others will also be sold to the highest bidders.
* This article was derived from
Prof Rose’s written evidence to the US Senate Indian Affairs Committee on February 9, 2012.
A new era at International Casino Review
Hugh Sorrill has taken over as editor of International Casino Review following a
successful term as deputy since 2004. He replaces Phil Martin who had held the post since the launch of the publication nine years ago.
16 March 2012 •comment
The new editor said: "This is an exciting time at which to take on the mantle: we have a number of new projects underway to take the industry’s favourite publication forward into the
new era. There is a highly professional team of 12 people working on International Casino Review, all making significant contributions to this publication's status as a market leader. I’m delighted to be taking over the editorship and working with the team to implement these new initiatives and projects over the coming months." John Sullivan, Publishing Director at GB Media said: "Hugh is the obvious choice to take over the editorship of International Casino Review; he has vast experience and knowledge of the global casino markets and already knows the publication inside out. We have been planning a number of new
initiatives to International Casino Review for some time, which we will now implement under Hugh’s editorship. I’m very much looking forward to working with Hugh and the team to further enhance International Casino Review as a market leading publication." On Phil’s departure, John commented: "I’ve enjoyed working with Phil immensely for the past 9 years and together with everyone here at GB Media wish him great success in his new role at Gaming Publishing and with his novel writing and website. I’m certain it won’t be too long before Phil’s creative force reaches an audience far beyond the casino sector."
“We can all feel somewhat nostalgic about this being the last gaming industry show to be held at Earls Court but we have so much to look forward to as we move to ExCel next year. We all must undertake a period of educating and informing our customers about the new venue and the new date: it is a process that, for Novomatic, starts right now and it will usher in a new period of growth; not just for the show but also for the great industry that it represents.”
Jens Halle, managing director, Novomatic Group
Quote Unquote
“We are juggling many balls at the same time. These are not the ‘business-as-usual’ years. Many things are moving in our industry, in the markets, with the suppliers, with the other gambling operators, within the national regulatory scenes, not to mention all the
movement at EU level. It is therefore more than time to all invest our energy into cooperating and building a secure, fair, healthy and viable future for the whole industry.”
Ron Goudsmit,
chairman of ECA and secretary to the board of Holland Casino
“There are an absurd amount of different levels within the tax regime and the Government should look to create a level playing field.”
Malcolm Moss, chairman of the UK’s National Casino Industry Forum, calling for equity in the taxation of land- based and online casinos
“Recent legislative action in [emerging gaming] markets has generated significant interest on the part of operators, including activity in the Massachusetts market. Although the state of Massachusetts is still in its early stages of determining gambling licence approvals, casino operators have their foot on the gas pedal in what will likely provide a significant opportunity for global gaming manufacturers.”
Marcus Prater, executive director, Association of Gaming Equipment Manufacturers (AGEM)
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