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Gov. Sandoval seeks federal, not state, approval of online poker
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SANDOVAL LETTER
Read Gov. Brian Sandoval's position on any legislation that would legalize online poker in Nevada.
Updated: Apr. 12, 2011 | 6:08 a.m.
Gov. Brian Sandoval said Monday he supported Congress approving online poker legislation rather than having the issue decided on a state-by-state basis.
"I do believe that online gaming is the (wave) of the future," the Republican governor said during an appearance on "Nevada Newsmakers," adding that Nevada should be the first state to take advantage if the federal law passes.
Technically, online poker is not illegal in the United States. But participating in an online poker game where the participants are wagering money on the outcome is illegal.
In 2006, a federal law banned banks and other financial companies from processing gambling transactions across state lines. The Unlawful Internet Gambling Enforcement Act also established the framework for legalizing intrastate gambling.
The law explicitly declared that online intrastate wagering did not constitute "unlawful Internet gambling" if expressly permitted by the laws of a state.
Sandoval sent a letter Monday to the chairman of the Assembly Judiciary Committee outlining his position that Nevada should not be in conflict with federal law.
"I don't want the state to be in contravention of federal law," the governor said during a 20-minute television interview. "If the federal government legalizes online poker, the state should be the one that sets up regulatory structure and the investigatory structure."
Assemblyman William Horne, D-Las Vegas, who leads the Judiciary Committee, introduced Assembly Bill 258 on March 10 that would allow online poker within Nevada and in foreign countries where it isn't banned.
If approved, the bill would require the Nevada Gaming Commission to adopt regulations allowing for Internet poker. Nevada gaming law allows casinos to operate games through hand-held or wireless devices using electronic money transfers.
Horne's bill, which is backed by Internet gaming company PokerStars, had one hearing March 24, but the committee hasn't voted. Horne was unavailable for comment on Monday.
In his letter, Sandoval recognized there was some disagreement about the scope of the ban, but said it was "vital that we not undermine the state's credibility as a ... regulator of gaming."
He urged Nevada to continue to "strive to be the leader in the emerging online poker industry" by creating an operating framework that ensures the state's regulatory structure was a model of "integrity and innovation."
"I would hope that any bill passes will not facilitate the legalization of online poker before the federal ban is lifted, or encourage any action that would hinder Congress's efforts towards lifting of the ban," Sandoval said.
Caesars Entertainment Corp. and MGM Resorts International are just two of the resort companies in Las Vegas that favor a federal law rather than a state bill. South Point owner Michael Gaughan has voiced his support for AB 258 as a way to help Nevada reduce its budget shortfall.
An effort by Senate Majority Leader Harry Reid, D-Nev., to pass an online poker bill in December near the end of the last session of Congress failed. In March, a bipartisan measure was introduced in the House that would establish federal licensing and regulation of online wagering, specifically poker.
In Washington on Monday, Reid said he was encouraged by new support from Las Vegas casino owners for legislation to legalize online poker, and by Sandoval's declaration that he preferred a federal bill.
But Reid added that he has been preoccupied with trying to avert a government shutdown and was unsure when he will have a poker bill ready to introduce in the U.S. Senate.
"We are trying to work through it now," Reid said when asked about online poker during a telephone call with reporters.
"We have new supporters this go-round we did not have last time," Reid said, naming Gaughan and Steve Wynn, chief executive officer of Wynn Resorts Ltd.
Plus, "Sheldon Adelson does not oppose it," Reid said of Las Vegas Sands Corp.'s chairman.
"We have always had the Fertittas," Reid said of the Stations Casinos Inc. owners. "We have always had MGM. We have always had (Caesars). So I would hope with this added help we can get it done but it is still not done ."
Reid said he hoped support from Republicans would persuade Sen. Jon Kyl, R-Ariz., to remove objections to the legislation. But, Reid said Kyl, too, has been "overwhelmed" by budget issues facing Congress.
"Sandoval is right," Reid added. Legalizing online poker "can't be done at the state level. "In most instances it is totally a violation of federal law."
Despite Reid's warning, the issue of legalizing of online poker has gathered steam on the state level. Besides Nevada, Florida and California have been debating bills to implement online gambling to raise revenue to help offset budget deficits.
New Jersey Republican Gov. Chris Christie recently vetoed a similar measure.
On Monday, Washington D.C. became the first jurisdiction to legalize online poker. The city council approved a budget last year allowing lottery provider Intra- lot to operate a poker website accessible only inside district boundaries.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Stephens Washington Bureau Chief Steve Tetreault may be reached at 2020-783-1760 or stetreault @stephensmedia.com
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The US government can't tell offshore companies what they can do. However, UIGEA can tell US banks and credit card companies that they can't transfer money to and from those sites. That was the big change that was effective last summer. There has been one big case where the US Attorney responsible for the area that includes NY seized millions of dollars that had been transferred from offline gaming sites to the accounts of American citizens. However, there are always ways around those regulations. For example at one major poker site, you tell them how much money you want to add to your account. They send you contact info for somebody in the Phillipines. You wire the money to that person and he deposits it into your account. Online gaming is here to stay.
The middle to the end of las Vegas. Why fly out here for the big games when you can play online at your own laptop where ever you are? I really don't trust the online systems and you should exclude large amounts.
Gary D ... what the hell are you talking about? Did you read the article?? Who is proposing this?? Your man Brian "Cowboy Boots" Sandoval ... and your name calling?? Your party is pushing for this as is the gaming community. Maybe instead of ranting here you should fire off some angry letters to YOUR OWN PARTY.
Just goes to show how the Republicans will sell their mother for enough money. Macau is where the gaming companies are looking, another decade and Reno will be entirely dead (save some vast warehouses) and all of Las Vegas will look like Fremont street ... thanks to Brian Sandoval. That is ok though because the Mormon ranchers will be in charge again ... so all will be well then of course.
It's a non issue one way or another. The US government has no authority whatsoever to tell any gaming company located in sovereigh territory (offshore) who they can do business with. That's why the UIGEA isn't worth the paper it's printed on.You can play poker and bet sports online with any company that will take your action. As we speak, hundreds of thousands of people are betting sports and playing poker with companies located in far away places. They'll continue to do so whether individual states say it's legal or not.
Dirty Harry and the DemocRATS love this idea ---- one more place to put a "GOVERNMENT TAX" on the little guys. ---------------------------------------- Not sure why The Kenyan, Dirty Harry and Smelley Shelley haven't been taxing the hell out of eBay, and the rest of internet/online sales - states already tax internet sales ????
Hopefully Nevada is next as I can't wait to play online. Though I am unable to determine the weakest player at my table and the only thing I know about a `short stack' is that it is on the kid's menu at IHOP, I am sure I can pay my mortgage this way.
Ante up boys!!!!
The casinos are on board with this so why is Carson City dragging their feet? Would be nice to get some straight answers for once from our elected officials. Looks really bad when someplace like D.C. beats us at our own game.
must be a "change" to what they call the "head start" program. what with many 5 year old kids becoming computer adepts. could be soon the wsop will have pre-teens at the table. if'n the organizers furnish some big city phone books so's the kids can see over the rail.
It's not Sandoval - It's MGM
Poker is not a crime!
I would rather play in the privacy of my home than have to sit next smelly stan to play cards.