AVP Weekly - Phil Ivey Partners for California Online Poker, U.S. Poker Legislation, and More
Author Jennifer Newell's poker week in review for July 8-14.
Our consolidation of the week's news is quick and to the point — seven stories, to be exact — for the week ending July 14. Let's go.
No. 1 — Rep. Barton Introduces Online Poker Legislation
As promised, United States Representative Joe Barton (R-TX) introduced an online-poker-only bill to Congress last week. The Internet Poker Freedom Act of 2013, officially referred to as HR 2666, is a 102-page piece of legislation that singles out online poker for legalization and regulation. This legislation contrasts with the recently-introduced Internet Gambling Regulation, Consumer Protection and Enforcement Act of 2013 from Rep. Peter King, which includes more forms of Internet gambling. Barton did propose and push a bill similar to his current one in 2011 but failed to garner much support for a floor vote.
This Internet Poker Freedom Act does take into consideration some of the more recent court rulings, such as United States v. DiCristina, which ruled that poker is a game of skill via an appeals court judge. Other details of this bill offer the ability for states and tribes to opt out and refuse participation, establish the Office of Internet Poker Oversight for regulatory purposes, and grant authority to the Secretary of Commerce and National Indian Gaming Commission for oversight and licensing. There are no taxes imposed on players or operators. On the somewhat controversial side, however, the law would supersede all other state and tribal laws pertaining to Internet poker.
No. 2 — Senate Committee Hearing Scheduled This Week
Just before the announcement of Rep. Barton's new bill being introduced to Congress, it was revealed that the United States Senate scheduled a hearing in the Commerce Subcommittee on Consumer Protection, Product Safety, and Insurance for Wednesday, July 17. The purpose of the hearing is to discuss online gambling and the best ways to protect consumers and poker players as states proceed with their own pro-Internet gambling laws.
"The Expansion of Internet Gambling: Assessing Consumer Protection Concerns" was announced by the Poker Players Alliance, though the organization was unclear about the exact focus of the meeting and whether or not it would include the King or Barton bills. Committee Chairman Jay Rockefeller was quoted as saying that a look at the gambling industry is necessary because it comes with "serious risks, including the potential for money laundering used for terrorist financing." He also wants to examine issues like underage gambling and consumers "vulnerable to fraud and abuse." There is no available list of witnesses at this point, but the hearing will be broadcast live on the Internet from the Senate Commerce Committee website.
No. 3 — Pala Signs Ivey for California Tribal Online Poker Deal
Poker pro Phil Ivey signed a deal to become the Brand Ambassador for a joint project — Pala Interactive — between the Pala Band of Mission Indians in California and Jim Ryan, the former bwin.party Chief Executive Officer. Pokerfuse broke the news last week, including news that the venture was formed in anticipation of online gambling legislation in California, though there is potential to expand to other states.
Pala Interactive plans to use Realtime Edge Software, which is currently used by ClubWPT, but US Poker was quick to point out that the software uses the former UltimateBet platform, which was in place at the time of the cheating scandal. In addition, Jim Ryan was the CEO of UltimateBet during the scandal and participated in attempts to try to hide the scandal from the public. Another potential stumbling block brought to light by US Poker is that the bill proposed by Pala and seven other California tribes contains a "bad actor" clause, one that could stand in the way of the Realtime Edge Software part of the deal.
No. 4 — Playtech Purchases Poker Strategy for €38.3 Million
A large acquisition deal in the online gaming industry came to light last week when it was revealed that Playtech purchased PokerStrategy for €38.3 million. Playtech is the operator of iPoker, which includes Titan Poker and other gaming platforms, and its purchase of PokerStrategy offers an expansion into a poker community that can be beneficial for all involved. PokerStrategy has more than six million members, and it recorded assets of €16.3 million, not to mention pre-tax profits in 2012 of €19.5 million.
There may be little change in PokerStrategy for its customers, as the founders — Dominik Kofert and Enrique Guzman — play to stay on in the role of consultants, and the current CEO and COO will remain in place. The same promotions and offerings will remain, and the prohibition of U.S.-facing online poker rooms will stay intact, though forum and coaching will still be open to residents of the United States.
No. 5 — Ultimate Poker Passes Nevada Field Trial
As the first real-money online poker site available to players in Nevada, the state's regulators put Ultimate Poker on a trial/test period to prove its ability to follow the strict gaming regulations established for Nevada. Last week, the Nevada Gaming Control Board announced that the site not only passed the test but is now up for final Nevada Gaming Commission recommendation sometime in July.
Ultimate Gaming's CEO Tobin Prior said, "We are thrilled that our product is the first to not only meet these standards, but exceed them." Since its launch on April 30, Ultimate Poker has continued to be the online available online poker site for Nevada residents. The company upgrades the product regularly and has since hosted a tournament series and enlisted a number of professional poker players to represent the site.
No. 6 — Caesars Confirms New Online Gaming Venture
Caesars Entertainment Corporation officially announced its new venture — Caesars Growth Partners — will offer $1.2 billion in stock. Caesars shareholders can purchase shares at $9.43 each in Caesars Acquisition with up to 125 million shares for sale. The new company plans to seek online gaming opportunities, especially in the United States with Internet gambling efforts in Nevada, New Jersey, and Delaware. In addition, expansions of real-money gambling will continue in countries like the UK, France, and Italy.
No. 7 — PokerStars Lobbies in California
Gambling Compliance reported last week that PokerStars has been lobbying for online poker in California. Former U.S. House Majority Leader Dick Gephardt heads up the lobby and was found in Sacramento, the state capitol, speaking with state senators. The efforts are strong due to the "bad actor" clauses currently outlined in proposed California online gaming bills, as well as opposition to PokerStars' presence in the state by tribal entities.
The report also contends that PokerStars is in talks with Southern California card room Hawaiian Gardens as a potential partner should the state authorize any type of online poker.