Forget Federal Regulation; States Finding Ways to Form Partnerships
02 November 2012
Legalized gambling is regulated in 85 countries around the world and pulls in almost $35 billion in wagers, some of that from US players. With a market expected to grow to $10 billion a year in the US alone, some states are anxious to get a piece of the action, or rather, a slice of the profits.
Those interested states, so far, include Nevada, Delaware, and New Jersey.
While most land-based casino operators, like MGM Resorts International Ltd, prefer the broader, consistent coverage of federal regulation, the passage of that kind of legislation–particularly in the chaos and wake of an election year, seems unlikely.
Jim Murren, CEO of MGM Resorts International, in an interview with Reuters said that MGM is “encouraged” to find the states talking to each other with the idea of creating interstate online gambling compacts. These compacts would expand the boundaries of an agreed-upon legislation and framework, pooling and sharing resources for mutual state benefit and regulation. While a promising alternative to federal regulation, interstate compacts generally require the approval of Congress, which has been less than cooperative. Murren goes on to say,
“We feel strongly that if it is in fact state by state, the states themselves need to compact with one another to create a more viable business model. Any one state going on its own presents an economic challenge, particularly in a small state like Nevada.”
Since a state-by-state framework can be patchy and inconsistent with regards to tax rates and liquidity, lack of federal regulation or state compacts not only puts unnecessary competition and instability into the mix, it also makes it difficult to attract businesses to the arena.
John McManus, executive Vice President and General Counsel for MGM, agrees, “Absent a federal law permitting online poker or gaming, I would urge that states … come up with uniform regulations and uniform technical requirements to the extent that they can because that will make it much easier for the industry to bring the product to your jurisdiction.”
MGM Resorts International expects to receive its online gaming license from the Nevada Gaming Commission this week. Only time will tell how far that license’s reach will go.
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As expected, some pretty big opposition has stepped forward to try and defeat the Nevada online gambling bill that is now trying to make its way through the Nevada Congress. Some of the biggest and most powerful casino companies have lined up against the bill which now looks to go in the direction of all the other recent attempts, defeated or just loss in debate.MGM Resorts International and Caesars Entertainment Corp. have come out against the proposal.Read full article
16 November 2012It's official: MGM Gets Online Poker License
MGM Resorts International and two other companies, Las Vegas-based Z4Poker LLC and Los Angeles-based CAMS LLC, were officially awarded licenses to compete in Nevada’s new intrastate online poker arena. This comes after they were given approval by the Gaming Control Board earlier this month. What’s next for MGM? In the coming months, MGM Resorts intends to fire up at play-for-fun poker room to drum up attention and a fan base. (MGM already has a social media poker site, myVEGAS.Read full article
08 January 2013Nevada's Online Gaming Could Reach Out To Other States
A draft bill has been submitted to the Nevada Legislature that would make it possible for Nevada-based online poker domains to accept wagers from gamblers in other authorized states. The bill, officially named Assembly Bill 5, has been introduced in the Nevada General Assembly on behalf of the Nevada Gaming Control Board and Governor Brian Sandoval. Read the Nevada Intrastate Gambling Bill here as it was introduced.Read full article