D.C. to offer internet gambling

[shortow]

http://www.usatoday.com/news/nation/...t-gambling.htm

With all the focus on New Jersey and Iowa this kind of came out of the blue didn't it?

[dhayman]

What irony, if actually true. Washington creates this stupid law in 2006, and now they are the first to jump in ? This is consistent with everything else going on in this country, this past decade.

[ocreditor]

What irony, if actually true. Washington creates this stupid law in 2006, and now they are the first to jump in ? This is consistent with everything else going on in this country, this past decade.

Couldn't agree more - ironic indeed

[islandmaan]

How come this thread is not getting more attention, this is big news, the first entity in the US to legalize online gaming, we have been waiting for this for 5 years. Am I missing something or does nobody care anymore.

Brian

[vinism]

How come this thread is not getting more attention, this is big news, the first entity in the US to legalize online gaming, we have been waiting for this for 5 years. Am I missing something or does nobody care anymore.

Brian

It's actually pretty hard to get a handle on what this means. The GPWA's Aaron Todd is working on a news story about it right now. But from an impact standpoint, here are some things to consider:

1. The online gaming provision was adopted through a provision in the 2011 budget, not through specific online gaming legislation. So it's hard to see how D.C. provides a road map to wider adoption, especially with measures in New Jersey, Iowa and Florida failing -- and a measure in Nevada becoming inconsequential.

2. D.C. does have an online gaming provider already. Intralot won the online gaming contract last year, and has been providing online lottery services.

3. It is unclear how quickly Intralot can get an online gaming site up and running, though the D.C. City Council would like to have a site up and running by the end of this year.

4. It's unclear if and when the D.C. Lottery Commission will write the gaming regulations.

5. It is hard to see how this will turn into a successful online gaming endeavor. The population of Washington D.C. is about 600,000, which is not much of a base for player liquidity, especially when you knock out 30% of the population for being under 18 or over 65. Knock out another 17% for living below the poverty line and throw in a population that's 52% female (not bad for casinos, but not good for poker) and you it becomes hard to see how D.C. will become the shining beacon for online gaming in the U.S.

6. All of that said, it is encouraging that someplace in the U.S. could be offering regulated online gaming by the end of the year. I'm just having a hard time getting excited about it.

[GamTrak]

I agree Vin as it's very confusing being that Washington D.C. is a different breed from the normal "states".

Washington, "the District", or simply D.C., is the capital of the United States, founded on July 16, 1790. The U.S. Constitution allows for the creation of a special district to serve as the permanent national capital. The District is therefore not a part of any U.S. state and is instead directly overseen by the federal government.

I say this to point out that they have different rules on just about everything. I'm hoping for the best, but it's not calculating just yet as to how the other states will get it done.

Fingers and toes are crossed that we can get closer to regulation.

[Randy72560]

How come this thread is not getting more attention, this is big news, the first entity in the US to legalize online gaming, we have been waiting for this for 5 years. Am I missing something or does nobody care anymore.

I think it's just confusing and I'm not even sure what this means. It's def progress, but how much progress? I'm not really sure. Hopefully this will help us all, and I LOVE that the mayor mentioned doing this to bring in additional revenue which is good argument right now.

[GPWA Aaron]

The GPWA's Aaron Todd is working on a news story about it right now.

Here's that story (https://www.gpwa.org/article.asp?id=197064) ...

D.C. BECOMES FIRST U.S. JURISDICTION TO REGULATE ONLINE POKER; OTHER STATES FOLD EFFORTS

13 April 2011
By Aaron Todd

Poker players in the United States hoping to see legislation licensing and regulating their pastime on the Internet have been on quite a rollercoaster the past few weeks.

Bills that would have regulated intrastate poker in New Jersey, Hawaii, Iowa and Florida have failed to materialize. Meanwhile, a half-page provision in Washington, D.C.'s 2011 budget that never even uses the word poker made the city the first jurisdiction in the U.S. to adopt legislation regulating the industry.

The provision, included on page 28 of the budget bill, gives the D.C. Lottery and Charitable Games Control Board the authority to set up "both games of skill and games of chance," and to offer games on the Internet. The game would most likely be provided by Intralot Interactive, which has an existing relationship with the D.C. Lottery.

"The reason (for the provision) was for us to help close the budget gap we have here in our city," said Councilman Michael Brown, who introduced the measure. "I was trying to figure out how to bring in as much revenue as possible to limit the impact of budget cuts."

Brown believes that the site will be up and running by the end of this year, though he says the Council isn't expecting any revenue before the site really gets ramped up in 2012.

Congress, which has ultimate authority over Washington D.C.'s budget and had 30 days to respond, did not eliminate the online gaming provision, thus allowing it to become law.

While D.C. residents may be the first in the nation to have an opportunity to play Internet poker on a site regulated by a jurisdiction within the U.S., Poker Players Alliance Chairman John Pappas doesn't believe that the model is one that states should be striving for.

"I just don't think they'll have the liquidity to sustain a desirable online site," said Pappas. "I don't think the lottery model will be a very good one for other states to try to adopt. Maybe in a small place like D.C., the lottery was the most appropriate vendor, but overall, having this take the form of another extension of government is probably a bad idea."

Pappas did say, however, that having online poker in Congress' "back yard" may open some naysayers up to the possibility that the industry could be regulated. That said, it is unlikely that a bill that would regulate online gambling at the federal level submitted by Reps. John Campbell (R-Calif.) and Barney Frank (D-Mass.) will receive much attention in this session of Congress, since Spencer Bachus (R-Ala.), the chairman of the House Financial Services Committee, is an avowed opponent of online gambling.

Pappas, however, said that despite "serious challenges" the Campbell/Frank bill faces in the Financial Services Committee due to Bachus, the PPA is pursuing other methods of moving a bill through Congress in other committees.

Meanwhile, legislation that would have created a regulatory framework for online casinos in New Jersey was vetoed by Gov. Chris Christie, and legislation to regulate intrastate online poker in Hawaii, Iowa and most recently, Florida, failed to advance through those states respective legislatures.

Yesterday, Nevada lawmakers amended what had been the most radical online poker bill in the nation. The original legislation directed the state's Gaming Commission to create regulations for the online poker industry and to allow any online poker room — including those that currently accept real-money play from U.S. customers — to apply for a license. But amendments made yesterday essentially neuter the bill, forcing the Gaming Commission to receive clarification from Congress and the Justice Department before granting licenses.

"They've punted to Congress to act first," said Pappas. "I think Gov. (Brian) Sandoval and the legislature's decision to look for guidance from the (federal government) is really the right approach. The PPA has always advocated a federal solution to Internet gaming so we don't have this kind of piecemeal approach to legislation on a state-by-state basis."

So it appears that there will be little progress in the effort to regulate the industry in the United States outside of the nation's capital until at least 2012, with the exception of California, where an online poker bill still has a chance to pass through traditional means.

[LuckyLizzy]

It really is almost unbelievable but great news nonetheless! I'm sure if the capital is doing it, everyone else will follow....hopefully.

[wagerjunction]

Wow, this really IS complicated. Thanks Aaron for shedding some light onto this.

Then again as the proverb says "The longest journey starts with a single step."