eGambling Tips

She’s back. The online casino Golden Palace is releasing a new Anna Nicole Smith slot game. Smith died from a drug overdose in 2007. Smith was only 36 years old at the time of her death. In 2006 Smith allowed herself to be painted in gold for a series of publicity shots promoting the casino. Smith was pregnant at the time. The pictures were held back due to Smith’s untimely death and have just been released to the public. Smith was known for outrageous behavior and her life was played out in the tabloid press. Smith was criticized for marrying a man many years her senior and was accused of marrying for money.

Smith died just before a five reel online slot machine was to be launched by the internet casino. A company executive explained ‘As big fans of Anna Nicole, we felt a collaborative effort would be mutually beneficial. Unfortunately, the tragic events that followed so closely after the photo shoot proved to be overwhelming for the starlet. Smith is survived by a daughter Danielynn who is now five years old. Out of respect for her and her family, the campaign was immediately shelved.” The casino says that by releasing the pictures they are paying homage to Smith’s ‘free spirit and zany sense of humor that captured a worldwide audience and countless devoted fans.’

The company revisited the slot machine recently and the Anna Nicole Smith slot game will be released soon. The theme of the game is glamour, glitter, bling and the high life. Game symbols include diamonds, lipstick, toy dogs and shoes. The recently released photos have generated a lot of publicity for the Playtech powered internet casino. The casino has a reputation of purchasing strange and weird celebrity artifacts at auctions. Recently they purchased a lock of Michael Jackson’s hair.

Internet gaming mogul Calvin Ayre, the creator of Bodog, has released his predictions for 2012 and makes some interesting observations. Ayre believes that the prospects for federal legalization of internet gambling are dim. Many gaming experts agree with Ayre and cite election year politics as the main reason the federal government will take no action to legalize internet gambling. Nevada will be at the forefront of legalization efforts since the state has already taken action to move the legalization process along.  Ayre stated “I say it’s 50/50 that there will be one more state doing remote gambling in 2012, and even that one state may only offer online purchases of lottery tickets. But while progress will be slow, this state-by-state process that started in late 2010 with remote sports betting in Nevada will continue to spread over the coming decade. Under this scenario, the big winners – apart from those companies already holding US land-based licenses – will be the companies holding the best technology. But the US is no longer the world’s largest market, and those foreign companies who have hitched their future growth strategies solely to America’s wagon will be sorely disappointed with the results.”

Ayre feels that European gaming markets are non cooperative and fragmented. Ayre says that these factors will cause further divisions. Ayre observed that “Overall, this is a stale and mature market with an economy that will remain shaky for a long time to come. The smart companies (smart enough to have steered clear of public markets and shareholder meetings) will be shifting their focus toward.” Ayre believes that Asia is a young and upcoming gambling market which is rapidly growing and will become stronger that all global markets put together. Ayre told interviewers “if you don’t yet have a toehold in Asia, you have no business calling yourself an industry player.” Ayre also believes that some gambling companies may face trouble in China.

In Latin America Ayres Ayres predicts that “The southern half of the western hemisphere will never rival Asia in terms of scale, but in gambling terms, it’s largely virgin territory, and probably represents the second best market to target in 2012.” He also says that very soon someone will be able to turn the Latin American gaming market into a multibillion dollar internet gaming industry. Ayres predicts a bright future for mobile gaming in 2012. Ayres stated “Live Dealer Casino is already massively popular in Asia he says, “live dealer’s appeal will spread to other markets and into other forms, such as bingo. The technology has matured, and bottom line, it’s just fun.” He also said that it is just a matter of time before random number generator casinos stage a comeback. Ayre told interviewers “it is wide open for some innovative company to make serious inroads.” Ayre believes that subscription poker and free-play virtual chip models will grow during 2012. Ayre predicta a bright future for anonymous payment systems and said that “this will be the year a modified version of Bitcoin hits the net.” Interesting predictions indeed!

Several states have announced plans to offer intrastate internet gambling to residents. The recent interpretation of the 1961 wire act by the US Department of Justice has prompted several states to go full tilt in their efforts to implement internet gambling. States see internet gambling as a new revenue stream that could provide cash strapped states with billions annually. New Jersey, Nevada and the District of Columbia are moving ahead with their plans to offer internet gambling early this year. In Connecticut Governor Dannel Malloy said he believes that internet gambling is inevitable given the new DOJ opinion on the issue.

Malloy believes that internet gambling will come to Connecticut but some legislators are not happy with the governor’s position. Malloy says that internet gambling could save jobs at casinos in the state but other see it as a job killer. In four weeks the legislative session begins and internet gambling is sure to be a hot topic among lawmakers. Currently there are hundreds of internet gambling sites like online bingo and many accept players from the US. Current law forbids banks and credit card companies from processing internet gambling transactions. Malloy believes the DOJ decision clears the way for internet gambling and that nothing can stop it. Malloy says that Connecticut needs to take advantage of the opportunities offered by internet gambling or lose out on the much needed revenue.

Malloy said that not participating in internet gambling could hurt the job prospects of employees at the states Native American casinos. State Senator John McKinney disagreed and stated “I think the Governor’s connection that twenty thousand jobs at Foxwoods and Mohegan Sun are going to be lost if we don’t have internet gambling is a big stretch.” Malloy countered and said “New Jersey is talking about having the appropriate legislation in a matter of weeks for online gambling.” The chairman of the Mohegan Tribe weighed in and stated “The bottom line is people are playing online now — just without any legal protection or revenue to our governments.”

It is not only Republicans that are unenthusiastic about the prospect of internet gambling. The Democratic State Senate President Pro Tem told reporters “We may actually lose more jobs at the casinos if that speeds the decline of revenue in Connecticut. GOP Senator McKinney stated “Governor Malloy wants everybody to believe that this Department of Justice opinion means that interstate gambling is a ‘done deal’ and that nothing can be done to stop it and that’s simply not true.” Some people say that internet gambling is insidious and addictive and should not be allowed under any circumstances. Newington resident Margaret Taylor expressed her opinion and said “It would be a good thing that the state gets the money but I don’t think on line gambling is a good idea.”We have enough gambling already.” Given the opposition the future of internet gambling in Connecticut is uncertain.

After several years of declining revenues Atlantic City casinos were up 4.2% in December 2011 the first increase in over three years. Casinos in the country’s second largest gambling market posted the first monthly revenue increases in years and several casino operators are hoping their losing streak is coming to an end. In December Atlantic City casinos took in $246.5 million. Slot machine revenues were up by 8.3% generating $174.1 million. Unfortunately table game revenues declined by 4.3% to $72.5 million. The last increases in monthly casino revenues were in August 2008.

2011 revenues for AC casinos were down 6.9% at $3.3 billion. 2011 marked the fifth year in a row that Atlantic Casino revenues have fallen. AC casinos face increasing competition from casinos in neighboring states such as Pennsylvania and an uncertain economy. The end of the long losing streak was encouraging for casino operators. David Rebuck, director of the state Division of Gaming Enforcement, stated “The positive win results are an encouraging sign of economic recovery for Atlantic City casinos. This is an exciting time for Atlantic City as we see more visitors enjoying the casinos and the wide-array of attractions. This has been the highest monthly percentage increase since December 2006,” he added. “With the regulatory reforms in place and the upcoming opening of the Revel casino, we are hopeful that this positive trend will continue and reinvigorate the excitement that is part of Atlantic City and its casino venues.”

CEO of Trump Entertainment resorts and president of the Casino Association of New Jersey Robert Griffin welcomed the rare piece of good news and stated “I believe we will look back at December 2011 as the beginning of the rebirth of Atlantic City. These results in December clearly show that the future of Atlantic City is a bright one.” Tony Rodio, president of the Tropicana Casino and Resort, predicted better times for Atlantic City casinos in 2012and may break the city’s five year losing streak. Rodio said “We’ve been seeing this trend for a while now, the declines getting smaller, things getting a little bit better. We’ll have a lot of positive months sprinkled into 2012.”

In May the $2.4 billion Revel casino will open bringing new players to the city and more money. Revel will be the city’s 12th casino and the first to open since the Borgata in 2003. In 2006 Atlantic City casino revenues hit a peak of $5.2 billion. The same year Pennsylvania opened its first casino across the Delaware River and today there are 10 casinos throughout the state. The new casinos siphoned money from the long time Atlantic City east coast gambling monopoly. When the recession hit things got even worse for AC casinos. Recently casino executives said that they sensed a turnaround and cited better than usual crowds and returns on non gambling events such as top name concerts, shopping, spas and restaurants.

It’s official; Monday night New Jersey lawmakers passed a bill that makes it legal to bet on sporting events and horse racing.  Once the bill is signed by Governor Christie the state faces a federal court battle to try and overturn a law that bans sports betting in all but four states. The New Jersey Senate and Assembly approved a measure that will allow New Jerseyans place wagers at 11 Atlantic City Casinos and the state’s four horse racing tracks. Punters will be able to place wagers on football, baseball, basketball and other professional or college sports. Bets could not be made on games involving New Jersey college teams.

The New Jersey legislature also passed laws that will enable horse racing fans to place bets at bars, restaurants and said that businesses planning to build off track betting parlors must be in business by the end of the year. State Senator Raymond Lesniak, a northern New Jersey Democrat, has been a strong and vocal proponent of the measure. Lesniak stated “These votes, by both houses of the legislature and the voters of New Jersey, mark the beginning of the end of the inequitable federal ban on sports betting. This time next year our residents won’t have to fly to Las Vegas or visit their local bookie to bet on the Giants, Jets or Eagles to win the Super Bowl. They will be able to go to an Atlantic City casino, Monmouth Racetrack or The Meadowlands.”

Previously Lesniak had sued the federal government to overturn the ban but his lawsuit was dismissed in federal court. Lesniak predicts that this time the state will have better luck in federal court especially since New Jersey residents indicated by a 2-to-1 margin in a non binding referendum last November that they support legal sports betting. Lesniak told reporters “I guarantee a victory in the federal courts for New Jersey to be able to enjoy the same benefits from sports betting Congress has given to Nevada.” In 1991 New Jersey missed a federal deadline to legalize sports betting. The state was left out of a 1992 law that allowed sports betting in four states; Nevada, Delaware, Oregon and Montana. Currently Nevada is the only state that allows legal bets on individual games.

Proponents of the measure say that the new law will help struggling Atlantic City casinos and horse racing tracks and will provide a new source of tax revenues. Assemblyman John Burzichelli stated “Let’s face it – sports gaming is already taking place, but the only people taking advantage of it are the bookies and criminal enterprises.” Lesniak was forced to drop a provision in the new law that would have allowed players to make bets on their computers and cell phones. Casinos in Atlantic City welcomed the news saying it will help them compete with casinos in neighboring states.

The Casino Association of New Jersey weighed in on the matter and in a statement issued Monday, January 9th stated “If and when the federal ban is overturned, this gambling law would permit casinos to accept wagers on sporting events, adding another amenity to enhance our ability to compete and grow as a destination resort. Legalized sports betting would provide an economic boost for Atlantic City and the entire state of New Jersey, as it would attract more tourists to our city and its world-class entertainment, thriving restaurants, brand-name retail shopping and world-famous Boardwalk.”

A Florida legislator has said that Florida is the 4th largest gambling state in the US. Florida State Senator Ellyn Bogdanoff, a Fort Lauderdale Republican, told reporters “Florida is considered the fourth-largest gambling state in the nation, but it has let the industry drive policy decisions and that has produced the worst kind of gaming. To me, no kind of gaming is good, but we as policymakers have to decide, do we want gaming with five-star hotels or Internet cafes in strip malls?” The claims came on the heels of a proposed bill that would allow the creation of three massive destination casino resorts in South Florida.

The claim that Florida is the nation’s 4th largest gambling market was repeated by Bogdanoff in a joint editorial with state Representative Eric Fresen, a Miami Republican. The claim has been supported by U.S. Representative Lincoln Diaz-Balart. Diaz Balart is an attorney for the Genting Group which plans to build a mega casino resort in Miami. The company has already purchased waterfront property. Aaron Nevins, Bogdanoff’s legislative assistant, told reporters that the claim is based on a report by Bernstein Research a firm that monitors gambling stocks. Diaz-Balart stated “Florida has more gaming options than Las Vegas.” The Bernstein Research report stated “There is currently $3.4B of gaming occurring in Florida or $7.4B if one includes the lottery … There are 8 casinos in the state run by Native Americans. Seven of these are Seminole and one is Miccosukee. These casinos generated revenues of just over $2B in 2009, making Florida the fourth largest state for tribal gaming….”

Some believe that Bogdanoff misspoke about the report. The Bernstein report makes it very clear that it is discussing tribal gaming in Florida not overall gaming in the state. Nevins told PolitiFact in an interview “She misspoke. Florida is the fourth-largest state for tribal gaming.” When asked if there were other reports that ranked state’s gaming revenues Nevins cited a report by the Nelson A. Rockefeller Institute of Government about state’s gaming revenues in fiscal 2010. According to the Rockefeller report 43 states operate lotteries, 15 have commercial casinos, and 12 have racinos and 40 states allow pari mutuel betting. In Florida gaming revenues were about $1.4 billion ranking Florida third in the nation behind New York and Pennsylvania.

Unfortunately there are several other reports with different figures making Bogdanoff’s claims difficult to prove. When Bogdanoff introduced her casino bill she stated “Florida is considered the fourth-largest gambling state in the nation…” In addition to mega resorts and casinos Florida gaming interests have expressed interest in internet gaming as a result of a recent DOJ memo that clarifies the 1961 Wire Act and defines what forms of internet gambling are legal and illegal.

The recent DOJ ruling that opened the door for internet gambling has divided several Native American tribes that depend on gambling for their livelihoods. The ruling that paved the way for states to offer internet gambling could prod federal legislators to finally pass internet gambling legislation. Many tribes view the ruling as a new business opportunity and see an opportunity to expand their operations online. Other tribes are not happy and say they do not have the money to invest in internet gaming operations and say they can’t compete with Las Vegas style gaming sites.

Tribal leaders and Native American casinos agree that federal poker legislation, which would make internet gambling legal in most of the US, would pressure tribal gaming operations too much. Penny Coleman, a lawyer who represents tribal nations told reporters “Now they are concerned that this ruling is going to be the impetus for the federal legislation. They’re worried there’s going to be this big push now.” The DOJ, which released their blockbuster ruling just before Christmas 2011, removed confusion about federal laws and gave individual states the green light to offer intrastate gambling games that don’t include sports betting.

The casino industry stands to lose unless it can offer internet gambling in every state. Casino lobbyists have been pressing members of congress to pass federal internet poker legislation before states have the opportunity to pass online gambling legislation in upcoming legislative sessions. Coleman, a former acting general counsel for the National Indian Gaming Commission said that tribal leaders “know Nevada doesn’t want to stay within its borders.” Native American tribes fear that they will be marginalized by large casino interests. Last November tribal leaders told congress that they want a seat at the table when internet poker legislation is drafted.  They say that current bills under consideration give states like Nevada and large casino interests like Caesar’s Entertainment an unfair advantage.

Tribal leaders also expressed concerns about being taxed and regulated by the federal government. Not every tribe is unhappy with the DOJ ruling. Some tribes in California have wanted to offer internet gambling in the state for years. Coleman said that in states with low populations Native American tribes are “not going to see the same economic benefit. A few sites and tribes will benefit and whole bunch won’t.” Currently there are 200 tribes that depend on their gaming operations for their livelihoods but only a few have the resources to set up internet gambling operations quickly. Native American tribes will be monitoring proposed federal gaming proposals closely.

In December 2011The Nevada Gaming Commission approved regulations that opened the door for gaming companies to offer internet poker in the state. Nevada will be the first state to regulate internet poker and other form of gambling like online bingo, slots, roulette, etc. Poker play will be limited to those residing in Nevada and will not be available out of the state. Gaming industry representatives applauded the move and gaming companies licensed in Nevada may now expand their operations online. Gaming companies not licensed in Nevada will have to undergo the same investigations and scrutiny required by Nevada gaming regulations. Caesar’s Entertainment and Boyd Gaming have already applied for licenses to provide internet video poker to Nevada residents.

The new Nevada regulations require license applicants to prove that they are capable of maintaining controls on player registration, prevent minors from gambling and establish the location of players. Fortunately the technology enabling gaming companies to fulfill these requirements is already in place. Regulations also say what information licensees must present on their websites and must address issues such as dispute resolution, accurate record keeping, fees, taxes and problem gambler notifications. In the UK all of these requirements have been in place for years and American gaming companies could learn a lot from the world’s largest regulated internet gaming market.

Gaming Control Board Chairman Mark Lipparelli told reporters that it is still too early to say what gaming company will be the first to receive a Nevada internet gaming license. Lipparelli told Gaming Commission members that gaming companies that have appeared before state regulators recently will have an advantage because investigators will have less material to sift through because of recent investigations. Most likely the first Nevada licenses will be issued by spring 2012. In Nevada the development of internet gambling regulations has been a smooth process since Nevada Governor Brian Sandoval, a former gambling commission member, signed legislation dealing with internet gambling which was passed by legislators in 2011.

Several meetings and workshops were held without controversy or opposition to the new legislation. No amendments to the law have been made. Gaming Commission Chairman Peter Bernhard said he expects the regulations to be tweaked by the Control Board and commission encounter issues not covered in the law. The Nevada Council on Problem Gambling sent a letter requesting that information about problem gambling be placed in the new regulations. The new licensing rules require internet gambling sites to have live links to information about dispute resolution and problem gambling websites.

Gaming attorney Bob Faiss pointed out the similarities of the internet gaming regulations with Nevada’s original laws legalizing casino gambling in the state. Faiss told reporters “Nevada was condemned by every other state for legalizing an activity that was criminalized in all those states,” Faiss said. “The goal of the federal government was to wipe out our gaming industry. It is not unreasonable to say that without Nevada’s commercial and regulatory success with respect to casino gaming, there would be no gaming industry today in the United States and little anywhere else. Now, Nevada gaming control and industry it governs are recognized as world leaders and models for replication,” he said. “It can be expected that this Nevada system for playing poker on the Internet will merit the same distinctions.”

If New Jersey State Senator Raymond Lesniak has his way the state will be a leader in the internet gambling industry. Lesniak plans to get a bill through the New Jersey state legislature that will legalize internet gambling for the state’s residents. Lesniak hopes to have a bill on Governor Christie’s desk by next week. Like many states New Jersey wants to take advantage of a recent Department of Justice memo that says that intrastate internet gambling does not violate federal law. The DOJ said that the wire act only prevents gamblers from betting on sports.

Lesniak believes that internet gambling has a bright future in New Jersey and told reporters “We can be the Silicon Valley of Internet gaming. It’s the wave of the future. It’s going to come, and we can be in the lead on it.” Nevada is another state that is moving quickly to legalize internet gambling. Last week Nevada regulators approved rules that allow gaming companies located in Nevada to offer internet poker to residents. Caesars Entertainment Corporation, which owns four Atlantic City casinos, has already applied for Nevada licenses to provide internet poker games. Boyd Gaming Corporation, which owns half of the Borgata, has also applied for a license.

Last year New Jersey tried to be the first state to offer internet gambling but Governor Christie vetoed the bill last March because of conflict with federal law and a fear that legalization could lead to a proliferation of backroom Internet gambling sites in the state. A spokesman for Governor Christie could not say whether Christie would sign Lesniak’s bill if it passes in the legislature. A spokesman for the New Jersey senate said it would not be clear until next week whether there is enough support for Lesniak’s bill to move quickly on the bill. A spokesman for the state Assembly’s leadership said that they will listen to Lesniak’s bill before deciding on a course of action in the state Assembly.

Lesniak pointed out that if his bill becomes law that will not necessarily mean that New Jersey legislators will be more likely to approve slot machines at racetracks in the state. Lesniak stated “Those are two separate issues.”He also said that his bill will give struggling Atlantic City casinos new revenue streams. Lesniak’s bill would also allocate $100,000 annually from internet gambling revenues to fund programs for problem gamblers. People with gambling problems will be able to set limits on how much they can bet or lose.

Internet gambling and online lottery tickets may become a reality thanks to a recent decision by the US Department of Justice. According to the DOJ the Wire Act only applies to sports betting and other wagers are perfectly legal. The decision was written in September 2011 but was not released until the last week of 2011. The decision found that the Wire Act’s prohibition of wagers via telecommunications crossing state lines and international boundaries refers to wagers on a “sporting event or contest.” Since online poker and other forms of internet gambling were not mentioned some experts say that the decision gives the green light to online gambling. Professor and gaming expert I. Nelson Rose wrote in a blog post “The United States Department of Justice has given the online gaming community a big, big present. If the Wire Act is limited to bets on sports events and races, what other federal anti-gambling statutes are left?” wrote Rose. “There are prohibitions on interstate lotteries, but Powerball and the other multi-state lotteries show how easily these can be gotten around, even before Congress passed an express exemption for state lotteries. And poker is not a lottery under federal law.”

In 2011 the DOJ aggressively enforced the ban on internet gaming and seized the domains and assets of several internet gaming sites. The DOJ charged that Absolute Poker, Poker Stars and Full Tilt Poker had violated the gambling law by accepting US players and had deceived banks into processing gambling related transactions. It has been estimated that in the US poker alone generated $6 billion annually in revenues. Many states plan to offer internet gaming to residents and some gaming experts believe that the DOJ’s decision will pave the way for legal intrastate online gambling. Some remain skeptical and say that a new administration could appoint DOJ officials with anti gambling views. Since Attorney Generals are appointed in the US a new AG could easily change policies regarding online gaming.

The ruling will help state lotteries implement online sales and several states plan to take advantage of online lotteries. Mark Hichar, a lawyer for the company that runs the Texas lottery, said that the DOJ memo removes uncertainty and will prompt state lotteries to run as many online games like online bingo as are legal under state laws. Hichar stated “This helps lotteries, which are … determined to remain relevant and to attract a new generation of players.” The DOJ memo could easily accelerate the growth of the internet gaming industry and make gaming stocks extremely attractive to investors.