Interstate Play is Key to Success of Internet Gambling

By Frank Catania

January 14, 2013

A bill that would authorize Atlantic City casinos to offer poker and other casino games on the Internet to players within New Jersey has been passed by the Legislature and is on Gov. Chris Christie's desk. The governor has 45 days from passage to sign it, veto it, or do nothing, in which case the bill will become law automatically.

At this point, the arguments in favor of the bill have been rehashed many times and are compelling. First, given the steep drop in Atlantic City's profits caused by competition from surrounding states - and the corresponding decrease in state tax revenues - anything that can stimulate our casino business seems worth a try.

Second, my experience as a former director of the New Jersey Division of Gaming Enforcement showed me that casino gaming can be well-regulated and safe if it is properly controlled by a capable and efficient regulatory body. My later experience in the online gaming world has taught me that Internet gaming can be regulated as well, if not better, than casino gaming, given the electronic trail of all transactions and the ability to monitor in real time. Age verification and geo-location software have also become widely available and are very effective.

Finally, just as when casino gaming was initially authorized, New Jersey has a chance to become a leader, only this time in the field of Internet gaming regulation. Already, Nevada has a statute and regulations in place for Internet gaming, and other states - including California - are in the process as well. It would be a shame if one of the premier states for casino regulation were to cede its existing head start and become an "also-ran" in the race to Internet gaming authorization and regulation.

Press Release

The IGC Responds to Online Casino Reports Re: Another Canadian Province Launches Online Gaming (by John W. April 16)

April 19, 2012 - On behalf of the Interactive Gaming Council (IGC), I would like to address a handful of inaccuracies in this article published by Online Casino Reports.

First, while it's true that Manitoba has recently announced its decision to join the British Columbia Lottery Corporation and Loto-Quebec in the Canadian PokerNetwork, it is worth noting that as this model launched, European nations that had already attempted to enforce a monopoly were pulling back in favour of licensing and regulating recognized and reputable operators. Many other listed entities are all licensed in Europe and willingly subject themselves to regulatory control of the highest standards. This means they compete openly in the market to the benefit of all stakeholders, including players, as opposed to relying on a state-sanctioned monopoly to support their business. 

We do not feel it is correct to represent companies who are unable to apply for a license in Canada as “illegal” or that they offer “no responsible gambling features”. In Europe the general trend is to move away from state monopolies and to allow licensing of independent groups who meet the relevant regulatory requirements and government standards. 

These companies are typically licensed in European countries and territories such as the UK, Denmark, France, Italy, Malta, Gibraltar and the Isle of Man. These countries all require high standards on such matters as under-age gambling, money laundering, responsible gambling, player protection and 3^rd party testing of systems for fairness and security.

Finally, Ontario and the Atlantic provinces have not contrary to your assertion, launched regulated online gambling environments in the last two years. Yes, they sell lottery tickets online, but that is far different from offering regulated casino-style games. It is also easy to verify that Ontario's launch date for its online model will take place sometime in 2013. 

There is a lot of information readily available about the benefits associated with regulated environments and there are many associations, including the IGC, who would be happy to provide it to you in the future.

 Amanda Brewer

Spokesperson, IGC (Canada)

Interactive Gaming Council Urges Ontario to Consider Regulating Online Gaming

Good Policy: Provide Legal Clarity; Enhance Consumer Protection; Generate Revenue

March 29, 2012

Ontario has a debt problem that is proving hard to fix. The Drummond Report, issued in February, contained 362 recommendations for what the province should do to get its fiscal house in order, including a number of gaming suggestions. Tuesday's budget demonstrates a new direction for the Liberal government as it attempts to balance Ontario's budget by heralding an era of austerity.

Concessions will be sought from many sectors as the province settles in for a long-term struggle to eliminate its deficit. But as the province is busy cutting and freezing, where are the revenue generating opportunities?

The Ontario Lottery and Gaming Corporation (OLG) also recently announced a series of changes aimed to modernize its operations and provide much-needed revenue to the province. Having acknowledged that its current model is outdated, the OLG is turning to the private sector to play an increased role by assuming the bulk of the risk (and the employees) in exchange for running casinos, while the OLG focuses on regulatory oversight and policy control.

The Interactive Gaming Council (IGC) applauds this direction, as it supports the backbone of a regulatory model for online gaming. The OLG has publicly declared its intentions to enter this space in 2013, and we hope that the corporation's preferred model for its existing operations will also be applied to any new offerings and will not follow the current model of picking only one supplier.

Could this be the year for a Federal Bill on online gaming?

October 20, 2011 - Change may be in the air for the US Congress when it comes to online gaming.

There are at least two proposals before Congress:  The first, H.R. 1174, would give the federal government the power and authority to allow the licensing of Internet casino games and poker. The second, H.R. 2366, would delegate most power and authority to state and tribal regulators, and allow the licensing of Internet poker only.

During the last Congress, the House saw only one proposal, which was similar to H.R. 1174. The bill, sponsored by Rep. Barney Frank, was sent to the floor of the House after the House Financial Services Committee approved it 41-22, but a vote on the floor never occurred.

One sign that Congress members may be seriously considering the legislation this time around is a letter sent from key U.S. Senators to Attorney General Eric Holder this past summer. The letter, cosigned by Arizona's notoriously anti-gaming Senator Jon Kyl and Nevada's notoriously pro-gaming Senator and Senate Majority Leader Harry Reid, asked Holder and the Department of Justice to aggressively pursue those offering illegal Internet gambling in the United States.

The letter also requests that Holder "reiterate the Department's longstanding position that federal law prohibits gambling over the Internet, including intra-state gambling (e.g., lotteries)." The Senators do not address the intrastate Internet exception Congress included in the Unlawful Internet Gambling Enforcement Act (UIGEA).

While the letter could be interpreted as an indication that any form of Internet gaming is not likely to occur before the November 2012 national elections, it might also be seen as an indication that the federal government is getting ready to take action before states decide to pass their own intrastate legislation.