AVP Weekly - PokerStars Making a U.S. Comeback? That and More
Author Jennifer Newell's poker week in review for July 1-7.
Our consolidation of the week's news is quick and to the point — seven stories, to be exact — for the week ending July 7. Let's go.
No. 1 — PokerStars Partners with Resorts in New Jersey
As the deadline hit on July 1 to solidify partnerships for New Jersey online gaming, Ultimate Gaming reached a last-minute deal with Trump Taj Mahal. Meanwhile, another deal was in progress, as the Rational Group, PokerStars' parent company, agreed to a deal with Resorts Casino Hotel in Atlantic City. This comes on the heels of PokerStars' failed attempt to appeal the latest ruling with regard to its severed deal with the Atlantic Club, which means PokerStars had another deal in the works to eke into New Jersey regardless.
Resorts is part of a larger series of brands, which includes Mohegan Sun and Margaritaville, all managed by Mohegan Gaming advisors and founded in 1978. While PokerStars must still pass through the gaming commission and be approved for a license with Resorts, they have until July 29 to file their full application and attempt to ensure that the process results in PokerStars' return to the United States.
No. 2 — Delaware Releases Proposed iGaming Regulations
The state of Delaware was the first to pass legislation to regulate and offer online gambling to its residents, but the process of devising regulations and offering license applications has been somewhat slow. Last week, however, the state offered its initial proposal of regulations for the online gaming system. They are published and accepting comments through the remainder of July in order to make any necessary revisions before putting them into effect next month.
USPoker.com revealed some of the details of the regulations, which include ban of anyone convicted of a felony or gambling-related crime from participating in Delaware online gambling. It is unclear if a company like PokerStars will fall into that category. In addition, the failure to follow tax laws on the federal, state, or local level in the past may exclude companies, as well, so the implications of this requirement remain to be seen. On the other hand, companies that are properly licensed in another state for online gambling may receive a waiver for Delaware to bypass some of the background requirements.
The majority of the proposed regulations pertain to details like technology, player protections, licensing, taxes, player registration and account information, promotions and VIP programs, and banking.
No. 3 — Hero Poker Returns to World Outside of U.S.
As the company promised when it ceased operations in December 2012, Hero Poker, formerly on the Merge Gaming Network, announced a return to the online-poker market by the end of 2013. Pokerfuse reported that the company will relaunch in a new jurisdiction and will not be open to players in the United States.
The CEO stated that the long wait and inability to reenter the U.S. market may be disappointing to some, but the vision for the company involves a three- to five-year plan "to come back to the real home of poker in a meaningful way." More announcements are to come as the official relaunch nears.
No. 4 — Microsoft Executive Takes New Role at Zynga
Big changes happened at Zynga last week, with the company's founder, Mark Pincus, stepping down from his position as Chief Executive Officer, and former head of Microsoft's Xbox division, Don Mattrick, set to take over. Mattrick was unanimously appointed by the board. While Pincus will remain with the company as Chairman and Chief Product Officer, he will hand over the reins to Mattrick to take the company to a new level. The change comes after the recent layoffs of hundreds of workers at Zynga.
Mattrick brings six years of Microsoft experience to Zynga, three of which included leading the Interactive Entertainment department in North America and specializing in the development of the Xbox brand. His addition to the Zynga team has increased stock prices consistently over the past week.
No. 5 — Chico Poker Network Players Being Paid
As reports continue to surface of online gaming sites refusing or unable to pay customers, good news came from the Chico Poker Network. Previously known as the Action Poker Network, skins currently include ActionPoker, BetOnline, TigerGaming, and Pay No Rake. The company resolved differences with Julian International Holdings, and payments to customers began at the beginning of July, according to Pokerfuse.
Players were not given much hope in past months, as withdrawals were canceled, and all pending payouts were, in fact, canceled on June 24. However, players could request withdrawals again, and players reported receiving their funds immediately via Skrill or MoneyBookers, and they were also awarded an extra five percent as a "thank you" bonus for their patience.
No. 6 — Bitcoin Still Pursued as Online Payment Option
Despite efforts by the United States government to crack down on Bitcoin exchanges and processors, more online poker sites than ever are considering adding Bitcoin to their funds transfer options. The latest to mull the idea is Merge Gaming Network. According to a popular online poker forum, Carbon Poker has been trying to address player concerns about that site and others on Merge. It was suggested that the site consider Bitcoin processing to help with the payout process that has extended beyond a few months for most players, and the Carbon representative admitted that Merge was investigating the validity of that option.
Also, Pokerfuse recently reported that the Winklevoss brothers, formerly of Facebook fame, plan to set up an Exchange Traded Fund to buy Bitcoin, and they are currently trying to raise $20 million for the Winklevoss Bitcoin Trust. Their intention is to simplify the process for people in the United States to invest in Bitcoin and use it more frequently in online operations, specifically in the gaming industry.
No. 7 — Fallout from Adelson Comments Continues
More than a week after Las Vegas Sands CEO Sheldon Adelson took to a public forum to rail against online gambling, the responses to his comments continue to echo throughout the poker community. While a proposed ban of the Venetian establishment in Las Vegas will likely gain much ground, the country of Spain may have more at stake in the Internet gaming battle.
Adelson has been applying pressure to the Spanish government to limit online gambling, which comes amidst his plans to invest in a massive land-based casino development in Spain. No official response has come from members of Spain's politicians, but lobbyists were quite dismissive of Adelson's statements. JDigital commented that there was "no data" to support his theory, and spokesperson Miguel Ferrer added that limitations on Internet gambling in Spain will reduce competition in the market and limit tax income for the country.