AVP Weekly: Nevada Online Poker, NJ Online Gaming, Free Poker Growth in US
Author Jennifer Newell details the poker week in review, touching on the poker legislation in different states, major players in the online market, and free-play poker in the US.
Poker to the Point: Week ending February 17
Our consolidation of the week's news is quick and to the point, seven of them to be exact. Let's go.
#1 - Nevada Online Gaming Bill Undergoes Changes
When Nevada Governor Brian Sandoval set out to spearhead an online gaming bill, his goal was to lift restrictions on interstate Internet compacts. He wanted to be able to authorize deals with other states to link player pools sans the current federal restrictions. Assembly Majority Leader William Horne stepped up to the plate to move the bill on behalf of Sandoval, but when AB114 was revealed, it included a "bad actor" clause to lock out any companies that operated in the United States after the passage of the UIGEA in 2006. That ban would be in effect for 10 years.
In addition, the new Nevada bill proposes doubling the licensing fees for online gaming, increasing them from $500K to $1 million. License renewals would also increase from $250K to $500K. Some legislators who were on board with Sandoval's original proposal now say they will not vote for passage because of the fee hikes.
In other Nevada news, the Gaming Control Board is urging the passage of legislation, presented as SB9 to the Senate Committee on the Judiciary, to tax online poker tournaments. The tax would only apply to Internet poker operators, not to players.
#2 - Casinos Move, Stocks Rise on New Jersey Online Gaming News
Last week's news that New Jersey Governor Chris Christie conditionally vetoed - thus approved - an online gambling bill resonated in many areas of the gaming industry. Casinos began making moves to reenter the New Jersey market. For example, MGM Resorts requested permission from the Casino Control Commission to keep its half-ownership in the Borgata in Atlantic City. The state is considering reinstating MGM's license.
Stocks for many gaming companies rose on the news from New Jersey. Zynga soared 11 percent, and Caesars Entertainment shot up 38 percent. Even overseas companies with a stake in US Internet gambling saw boosts, as Bwin.Party Digital Entertainment shares were up 16 percent and 888 Holdings gained 17 percent.
#3 - Washington and Pennsylvania Make Online Gambling Moves
Currently, Washington's state law makes online poker a Class C felony with the potential for five years in prison and a $10,000 fine. Washington State Representative Paul Harris introduced legislation that would reduce online poker penalties to a Class 3 civil infraction, meaning a person could only be charged a maximum $50 fine and "statutory assessments." Harris is currently seeking cosponsors for the bill and a hearing.
In Pennsylvania, State Representative Tina Davis says she is certain that online gambling will happen eventually, so she plans to introduce a bill in an attempt to pass the bill in the House in February. The bill proposes a $16.5 million license fee and tax rate of 45 percent. She hopes to start the conversation and use the argument that Pennsylvania must stay competitive in the new industry despite facing a Republican-controlled state legislature.
#4 - Netherlands, Switzerland Closer to Online Gaming
The Netherlands' Holland Casino issued an urgent request for proposals regarding the establishment of a free-play online gambling site that would offer casino games, bingo, and poker. Holland could then move smoothly into real-money Internet gambling when it becomes legal. This move came as the country currently reviews online gambling legislation to be presented in April and fully passed sometime in 2013.
Switzerland has decided to rid the country of an Internet gambling ban in favor of regulation. The Federal Council revealed plans to legalize online gambling with the benefit of much-needed revenue. The law is currently being drafted by the Federal Department of Justice and Police and Swiss representatives from each state.
#5 - Free Poker Grows in US
As more states legalize - or at least consider it - online gambling, more companies are establishing their free-play online casinos in the hopes of someday transforming those sites into lucrative, real-money sites. American Casino & Entertainment Properties (ACEP), owner of the Las Vegas casinos Stratosphere and Arizona Charlie's, launched acePLAY Poker. The free-play site will offer players prizes, such as hotel rooms and show tickets. ACEP is licensed to offer online poker in Nevada and hopes that their offerings can expand to include more casino games in the future.
The software used by ACEP is from Ongame, a company that hasn't operated in the US market since Black Friday. Players can use the software on Windows and Mac, and a mobile version is due out in the coming months.
#6 - Lock Poker Separates High Stakes Tables
Much of the scrutiny facing Lock Poker of late has been related to player funds withdrawals, as many customers have complained about months of waiting to receive cashouts. The company, on the Revolution Poker Network, then began a controversial move to separate high stakes cash game tables from others. There was no announcement; players noticed and discussed on forums.
The original play was to separate No Limit Hold'em games at $5/$10 limit and higher, but it has since grown to include all games at $2/$4 and higher. Some report $1/$2 games are also included in the "high stakes" separated tables as well. Lock responded that it was better for players and balance between casual players and grinders.
#7 - ISPT Troubles Continue
The International Stadiums Poker Tour was touted as the biggest thing poker would ever see, a combination of online tournaments and a live tournament that would fill a stadium. Implementation of the project has hit some snags, however. First, it was reported that the first Day 1 of the massive tournament was cancelled because only two players registered through Lock Poker. Poker 770 also cancelled some satellite tournaments because there weren't the required 30 players registered in the €2.20 rebuy satellite. Since then, three of the five initial starting days of the tournament have been cancelled.
Now, the ISPT has changed its venue from Wembley Stadium to the Wembley Conference Centre due to anticipated low turnout. More changes are supposed to be announced soon.
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