Online Casinos United States - for US Casino Players

Nevada, USA , where declining gaming and sales tax collections have ravaged the biennial budget, could benefit financially if a bill to legalize Internet gambling in the United States is approved by Congress.

The potential, however, rests on a big IF.
A House of Representatives resolution was introduced in May that would establish a framework to permit licensed online casino gambling operators to accept wagers from inside the United States.

Legal experts said Nevada, USA has the statutory structure in place to investigate and license online gaming companies. Also, Nevada, USA could become the premier American jurisdiction for hosting Internet casinos.

If the sites were to operate from Nevada, USA , gaming regulators said the online businesses would have to pay upfront fees. Also, the online casinos would be taxed at the same rate as Strip casinos, now 6.75 percent on gaming revenues.

Again, a big IF because the keys to the whole deal rest with the 111th Congress some 2,500 miles to the east in Washington, D.C.

Federal lawmakers have focused attention on health care reform, the nation's economic crisis and other matters, setting aside issues such as Internet gambling.

"(Debate on the bill) probably won't happen this year," said former Sen. Richard Bryan, an attorney with Lionel Sawyer & Collins, who spent 12 years representing Nevada, USA in the U.S. Senate as a Democrat.

"My sense, however, is that there is a gathering, gradual momentum where, eventually, Internet gaming will occur and be regulated," Bryan said. "I'm just not sure if it has reached critical mass yet."

Lack of action hasn't stopped interest in the subject.
Bryan and fellow Lionel Sawyer & Collins attorney Greg Gemignani said the firm has been approached by potential clients who want to set up Internet gambling businesses in Nevada, USA should the activity be legalized.

Nevada, USA lawmakers enacted the process to license Internet gaming in 2001 but the state's effort went dormant a year later when there wasn't any action on the federal level.
If Internet gaming is legalized under the current bill in Congress, Nevada, USA could be chosen by the Department of Treasury to determine whether an applicant is suitable for federal gaming licensing.

BENEFITS TO Nevada, USA
Observers believe Nevada, USA , which legalized casinos in 1931, stands to benefit because the state has investigated and licensed gaming companies and regulated the industry longer than any other jurisdiction.

"The suitability requirements under the current bill look like a subset of what Nevada, USA already requires," Gemignani said. "Given Nevada, USA 's current laws permitting interactive gaming licensing, Nevada, USA is well-placed to be at the forefront of regulating online gaming and providing assistance to the federal government in determining the suitability of applicants."

Gaming Control Board Chairman Dennis Neilander said the state's current regulatory structure could be enhanced with regulations covering online casino gambling. Under the state's 2001 law, the Nevada, USA Gaming Commission could set policy that mirrors federal regulations.
Nevada, USA online casinos would have to use technology that offers reasonable assurance that wagers would not be accepted from states where Internet gambling is prohibited and that minors could not access the sites.

"We have the enabling legislation in place that would allow us to go forward with the concepts that I've heard are being discussed," Neilander said. "The federal government would set a baseline standard of minimum requirements. It would be up to individual states to opt in."
Under the state's law, Nevada, USA could earn upfront fees, which could be larger than normal licensing fees.

"We would contemplate going forward with a gaming tax that would be the same as a bricks-and-mortar casino," Neilander said.

Rep. Barney Frank, D-Mass., is the main sponsor of House Resolution 2267, the Internet Gambling, Regulation, Consumer Protection and Enforcement Act. Rep. Shelley Berkley, D-Nev., whose district includes the Strip, was one of the bill's co-sponsors.

The legislation provides safeguards against compulsive and underage gambling, money laundering, fraud and identity theft.
It's not the first time Internet gaming has come through Congress.
President George W. Bush signed the Unlawful Internet Gambling Enforcement Act in 2006, which made it a crime for banks and other financial institutions to process transactions used in online gaming.

Bryan, who was Nevada, USA 's attorney general when Atlantic City legalized casinos, was the state's governor when gaming began to expand nationally into riverboat casino markets.

Nevada, USA 's casino industry initially opposed the growth. Eventually, the Nevada, USA gaming companies moved into new markets and fueled much of the expansion in the 1990s. In 2007, commercial casinos reported gross gaming revenues of $32.54 billion.

WAGERING ON WEB SITES
The American Gaming Association, the casino industry's Washington D.C.-based lobbying arm, estimated that Americans wagered $5.9 billion on gambling Web sites outside the United States. Those same sites took in another $21 billion from gamblers worldwide.

"I haven't taken the industry's temperature in terms of Internet gaming, but, because of the potential revenues involved, I do believe there is some momentum moving in favor of the activity," Bryan said.

Gemignani said gaming companies licensed in Nevada, USA that are interested in jumping into the online casino business would have an advantage over outside companies seeking to break into the market.

"There are a substantial number of Nevada, USA licensees with experience in the technologies, systems and management of systems that can be used for online gaming," Gemignani said.
The casino industry is split on Internet gaming. As such, the American Gaming Association has taken a neutral stance on the issue "due to the divergent views of its members," according to a policy statement.

"We don't have a public position on the bill, but we are interested observers and will continue to monitor the situation as things progress," Las Vegas Sands Corp. spokesman Ron Reese said.
MGM Mirage took a short-lived stab at running an Internet gambling site in September 2001, but abandoned the idea after 21 months. The casino, which was licensed by the Isle of Man, did not accept wagers from U.S. citizens.

MGM Mirage spokesman Alan Feldman said the company's position on Internet gaming has not changed.

"We have always felt it should be legalized, regulated and taxed," Feldman said. "There is no need to create a whole new infrastructure with government oversight because it already exists in the states."

Harrah's Entertainment is the most vocal proponent of legalizing Internet wagering. Earlier this year, the company hired a former online gaming executive to expand its World Series of Poker brand internationally and online.

Harrah's Chairman Gary Loveman has said on many occasions that Internet gaming, especially poker, should be legalized.

Slot machine giant International Game Technology owns two subsidiaries based in Europe that provide content to online casinos.

Bryan said Washington, D.C., moves at a "glacial pace." However, he said there may be an underlying effort to pass Frank's bill because states could realize much-needed tax revenues from Internet gaming.

"I believe there is probably more support for it today than there was a decade ago," Bryan said.

"A bid to offer state-sanctioned online poker in California, USA took a hit Tuesday morning when the leader of the California, USA Senate shot down the idea of passing a bill in the closing month of the legislative session. Meanwhile, opponents of the idea say there is a growing movement against any action this year, and a poll commissioned by one major gaming tribe found that voters were hostile to the idea.

"The effort is led by the Morongo Band of Mission Indians, which operates one of the largest tribal casinos in California, and several card clubs. They have been circulating a five-page draft bill that would create a centralized, U.S. online poker website they would offer to online customers within California's borders. The consortium would have an exclusive right to offer online poker, but all California, USA Indian tribes and card clubs would be eligible to be members. The draft also states a so-far unspecified percentage of fees would be paid to the state.

"...On Wednsday morning, Mark Macarro, the chairman of the Pechanga Band of Luiseסo Indians, sent out a letter to leaders of other tribes stating 'Pechanga has had a standing oppose position to online poker since proposals first surfaced late last year out of concerns for the far-reaching legal, political and policy consequences of an expansion of this magnitude.' Not a CTBA member, Pechanga operates a 2,000 slot machine casino in Temecula.

"Macarro also attached the results of a survey his tribe commissioned through EMC Research. According to the poll of 802 randomly selected California, USA voters conducted August 9-13, 61 percent opposed legalizing online poker in California. This included 44 percent who were "strongly opposed." Only 36 percent were in favor..."

"...On Tuesday morning, Senate Pro Tem Darrell Steinberg, D-Sacramento, was holding a press availability when a reporter asked about the proposal.

"'I don't think it should be taken up in the last four weeks, Steinberg replied. I think it is a legitimate idea for consideration. I only have one question when I hear a proposal like that: how much money for the state General Fund? It's all I want to know. You know, is it two, three hundred million dollars? If it is, I'd consider it. But I think it's going to take more than four weeks to analyze that kind of proposal and the potential economic benefits..."

In the USA, the State of Arkansas is getting ready to legalize a new lottery system. And that’s the subject of some controversy, since many officials in that state expect this lottery to launch a wave of “problem gamblers.”

In fact, that’s why the state has mandated that at least $200,000 in lottery proceeds must be dedicated to “the Department of Health for the treatment of compulsive gambling disorder and educational programs related to compulsive and education related to compulsive gambling disorder” each year.

However, according to Arkansas state Lottery Director Ernie Passailaigue (who pulls in an annual salary of $324,000 from the state lottery board), problem gambling isn’t caused by lotteries. It’s caused by Internet gaming.

“If you check with the Department of Alcohol and Other (Drug) Abuse Services (DAODAS) in South Carolina, who administer the gambling program in South Carolina, they’ll tell you most of the problems are Online Gambling,” Passailaigue said in an article posted in the Arkansas News.

But that’s not true, the article goes on to comfirm. Christopher Reid, an employee of South Carolina’s gambling services , said, “We have had some calls that come in in relation to Online Gambling, but not too many.” So what are the problem gaming calls about? “Mainly the lottery,” he said.

Another clear illustration why politicians in the USA may not be ready to legalize online casino gambling: It’s too convenient a scapegoat on which to blame all other problems.

Some of the UK's largest online casino owners moved their offices to Gibraltar, for the purpose of tax reduction and also possibly looking for advantages in the potential United Sates casino gambling market.

The decision by online casino owners William Hill and Ladbrokes to move their offices from the UK to Gibraltar may be a preparation for the opening of the USA market. Gambling companies are resigned to a high level of taxation when and if USA laws are changed to liscence and regulate online gambling, and removal the high taxation in the UK could be a move toward USA profits.

The two companies had complained to the UK Gambling Commission about the uneven treatment given offshore casinos to those operating from the UK numerous times. Although a review of conditions was scheduled by the commission, and White Listing of new online casinos was suspended, the Gambling companies found the response too little and too late.

Moving to Gibraltar will decimate each firm's UK tax, dropping the rate from 15 percent to 1.5 percent. Executives with both Hill and Ladbrokes said the change was made reluctantly, and forced by the competitive imbalance.

But Gambling observer Ryan Costigan says the move may signal positioning to attack the immense USA market when a multitude of legislative and judicial measures bring about licensing and regulation of online casinos by the US.

"If these companies continued to pay the exorbitant UK tax, they would be unlikely to find a profit in the USA after adding likely USA taxes," said Costigan.

Betfair may be the next Internet gambling operator to desert, saying recently it has no plans to leave the UK, but noting its extreme dissatisfaction with the leg up its competitors just acquired.

New Jersey Democrat Robert Menendez has just introduced into the UNITED STATES Senate a brand new piece of legislation designed to legalize and regulate Online poker.

"To amend title 31, United States Code, to provide for the licensing by the Secretary of the Treasury of Internet poker and other games that are predominantly of skill, to provide for consumer protections on the Internet, to enforce the tax code, and for other purposes," the bill begins.

The bill would establish a new legal regulatory framework for USA Online Poker, and also put in place certain consumer protections such as age restrictions. Officially entitled S.8309, the Internet Poker and Games of Skill Regulation, Consumer Protection, and Enforcement Act, it was introduced today.

No matter what success this bill meets with, it represents another huge milestone in the nationwide struggle to reclassify poker from gambling to a game of skill. This movement seeks to enable online poker to be not only legalized but also change the way it is regarded in popular culture.

That movement has gained a lot of transaction over the past year, with smaller court victories in states such as Colorado, Pennsylvania, and South Carolina, and with Representative Barney Frank’s recent efforts to legalize and regulate certain sectors of online gambling with his own legislation (which is separate from this bill).

Home to the original UNITED STATES gaming resort destination, Atlantic City, New Jersey has long had its own internal struggles regarding the legality of gaming, and has recently clashed with the federal government on this basis. So it makes sense that the author of this new legislation is is from New Jersey — and a Democrat, the party that is apparently more open to the idea of fully legalized online gambling. (Although it technically has bipartisan support, the vast majority of supporters of Barney Frank’s recent pro-Internet gambling efforts have been Democrats.)