On Thursday morning, the Nevada Assembly Committee on Judiciary met to review a proposal regarding the legalization and regulation of intrastate online poker.
The committee hearing featured discussion of AB 258, the legislation proposed by Committee on Judiciary Chairman William Horne. Horne’s legislation would effectively legalize internet poker in Nevada, although there was some discussion as to whether it would be for an intrastate or interstate means. Horne recused himself from heading the hearing so he could provide testimony for the committee.
Horne began the hearing by reinforcing, “I believe Nevada should continue to be the gold standard when it comes to gaming.” He then read the body of the proposed legislation, which had undergone minor changes since it was initially introduced.
When asked about the possibility of offshore sites, such as PokerStars or Full Tilt Poker, earning licenses in the state, Horne explained that the Nevada Gaming Commission would “strike an appropriate balance when determining licenses.” He added that there was intent to draw as many “major” players in the industry as possible.
Former Assembly Speaker Richard Perkins, who has been hired by PokerStars to lobby for AB 258, pointed out that the U.S. Government has failed to enact effective legislation regarding online gaming. “The Federal Government’s attempts have fallen short,” Perkins stated. “A Federal solution to online gaming is not close at hand.”
Jeremy Aguero, the lead analyst at Applied Analysis in Las Vegas, presented information on the benefits on legalization and regulation. In his testimony, Aguero broke down the fiscal impact on Nevada’s economy, reminding the committee on many occasions that he was making “conservative estimates.”
If Nevada were to institute an intrastate gaming network, Aguero contended that revenues would be approximately $33 million. Jobs created by the intrastate network would be minimal, as Aguero admitted that few in the online gaming industry would be willing to move any part of their operations to the state for such a small profit.
If an interstate network were created under AB 258, Aguero estimated that between 1,000 and 2,000 jobs would be created in the IT, administrative, and software development areas. The average salary of those jobs would be around $65,000. During questioning, however, Aguero believed that the state’s universities were not ready to provide personnel for many of the positions that would be offered.
The interstate network would give pause for online operators to consider a move to the Nevada desert. Aguero estimated that revenues in the first year alone could be as much as $77 million and could go up to over $108 million.
Poker pro Vanessa Rousso appeared before the panel to speak about the “gray area” that online poker currently finds itself in. Rousso stated, “Right now, because there isn’t a regulated industry, I do not have any legal recourses (when I play).” The PokerStars pro also commented on the possibility of regulated online poker in Nevada increasing tourism for the state through its special satellite events.
There was only one opposition voice heard during the two-hour meeting. Pete Ernaut represented the Nevada Resort Association and, in his testimony, stated that online poker is illegal in the United States. If there were a need for legislation, Ernaut argued that there was already enough regulation for the Gaming Commission to enact the necessary laws.
Not attending the hearing were representatives from either Caesars Entertainment – the owners of the World Series of Poker – or MGM Resorts International. The two casino powerhouses, which operate some of the most well known properties in Las Vegas, have come out in firm opposition to any proposed regulation of online poker in Nevada. If there is legislation enacted, Ernaut said, “Online sites should not dictate the laws.”
Although the hearing was a step forward, the future of AB 258 is unclear. The meeting on Thursday was informal and, at this time, there has been no future hearing dates or votes scheduled on the issue. The Nevada Senate, the counterpart of the Nevada Assembly, also would have to have comparable legislation on its docket before any bill could be sent to Nevada Governor Brian Sandoval.
