Online Gambling Issues In The US

A poker-only federal bill can cause a few problems

This week has been a very interesting one within the United States as far as online gambling goes, but not because of major changes and simply due to quite a few big rumors that can very well turn out to be true. The main subject of discussion is the future of online gambling in the US and if it will be poker-only, like in Nevada, or include a wide range of casino games, as legalized in New Jersey and Delaware.

Currently, the regulations in the United States are against online gambling as the Wire Act bans financial transactions for gambling purposes over the internet. However, some states have taken upon themselves to change the laws and have legalized some forms of online gambling within state borders. Nevada was the first but also the most limited since it only allows for online poker. The first site went live a few months ago and already dealt over 10 million hands, showing a great response from the players. The idea was that Nevada would start with poker-only regulations and then expand to include other casino games when things improve.

Other states have decided to go for it all right from the start and New Jersey is the biggest representative state that has legalized online casino games within its borders. There are however plenty of restrictions, with the biggest one being that only operators that own a casino in Atlantic City and their partners can apply for a license. New Jersey has a much bigger population than Nevada so the potential player base is much bigger once the sites go live; which is expected to happen in mid-November.

A federal bill lurks in the shadows

The lack of a new federal bill that would provide guidelines for all states regarding online gambling is becoming more of a concern every day. Senator Harry Reid pushed for an online poker bill last year but failed to get it through. Many believed it to be the last attempt given the fact that the states were already starting to work on their legislatures but it would seem that Reid will take another shot at it.

Now, the federal legislation clearly favors Nevada since it would only online poker and make intrastate compacts much easier. Since Nevada already has one site live and another on the way, this would put the other operators at a big disadvantage; not to mention the work put in by the companies in New Jersey that are looking to launch online casinos in just a few months.

Since the Republicans will most likely regain control of the upper chamber next year, Democratic Party member Harry Reid can feel that this year is the last chance for him to get the bill through.

If Reid manages to strengthen the Wire Act, New Jersey and Delaware will be forced to change their intrastate legislation and no longer allow games of chance. Since poker is considered a game of skill, the poker-only system already available in Nevada will be the only legal one. The senator is aiming to make his bid in late-September, which is also the time when Delaware plans to launch the new online casinos.

The interesting thing is that even if Reid wins the race, it is quite unlikely that the states would abide to the changes since they are mostly aimed at an intrastate level. This would make it much more difficult for states to share player liquidity but the regulations within borders are likely to remain the same, meaning that New Jersey and Delaware will continue on their online gambling paths. It remains to be seen what will happen over the next few months but things are certainly getting heated in the US.

Google+