Despite moves by the U.S. Government to crack down on the online poker industry, two states continue to move forward with legislation.
In Iowa, the State Senate passed a measure that requires the Iowa Racing and Gaming Commission to study internet poker and its effects. The vote on the study, which passed by a 38-12 vote in the Iowa Senate, would analyze several areas of the online poker industry that concern legislators, including the effects of unregulated internet poker play, consumer protection, responsible gaming, and regulatory recommendations.
The bill now goes to the House for its consideration. If it were passed in the House, the study would need to be completed by December 1.
The arguments for and against the proposed Iowa internet poker law are similar to what has been heard in other states like New Jersey, California, and Florida. Those in favor of legislation talk about the millions of dollars that can be raised for state coffers. Those not in favor, especially in Iowa, are worried about expanding gambling inside the state’s borders, where 14 state-approved and six Indian reservation casinos are located. The state also offers a lottery for its constituents.
Meanwhile, the Nevada General Assembly seems to be ready to look at the internet gaming question. Last week, AB 258, the bill sponsored by Assemblyman William Horne that would set up a regulated and taxed online gaming structure in the state of Nevada, cleared a committee vote. The next move for the bill would be debate in the Nevada General Assembly, although a vote has yet to be set.
AB 258 passed out of committee with several alterations. One of them – to create an intrastate poker framework rather than an interstate or global operation – was made to give the bill a better chance at passing. The change was made following negotiations between Horne and Governor Brian Sandoval, the newly elected Republican leader of Nevada.
In a letter sent to Horne, Governor Sandoval expressed support for Horne’s ideas, but was concerned that a global online poker operation would conflict with Federal law.
The passage of AB 258 out of committee came before the firestorm of what has become known as “Black Friday,” however. The April 15 action by the Southern District of New York, in which the founders of PokerStars, Full Tilt Poker, and Absolute Poker were indicted on several charges, has caused turmoil in Nevada politics and business.
Following the indictment, two Nevada casino companies, Wynn Resorts and Fertitta Interactive, ended agreements with PokerStars and Full Tilt Poker, respectively, to enter the online poker industry.
In the political realm, the actions of PokerStars, which lobbied aggressively for the passage of AB 258, have brought considerable heat on several politicians. PokerStars, through a political action committee (PAC) called ReelPAC, made campaign contributions to several top political campaigns in the state, including those of Governor Sandoval and his November 2010 opponent, Rory Reid.
PokerStars also contributed heavily to several top Nevada PACs. Overall, the contributions by PokerStars amounted to $272,000. Those contributions have since been returned by the respective campaigns; what effects the actions of PokerStars in its lobbying efforts for AB 258 will have are unknown.