Comments (15) | Add a comment
Internet poker supporters point to tax dollars; opponents question legality
-
Jessica Ebelhar/Las Vegas Review-Journal
Former Assembly speaker Richard Perkins testifies Thursday in front of the Assembly Judiciary Committee for Assembly Bill 258 at the State Legislative Building in Carson City. » Buy this photo
Tools
LAS VEGAS REVIEW-JOURNAL
Updated: Mar. 25, 2011 | 8:56 a.m.
Despite the promises of jobs, increased tax dollars and the potential of technology businesses locating to Nevada, a lobbyist for the casino industry told lawmakers Thursday one important aspect would keep them from approving Internet poker in the Silver State.
Gambling on the Internet is illegal in the United States.
The Assembly Judiciary Committee heard almost two-and-a-half hours of testimony from supporters of Assembly Bill 258, which would allow the Nevada Gaming Commission to adopt regulations for Internet poker.
Opponents of the bill, namely lobbyist Pete Ernaut of R&R Partners who was representing the Nevada Resort Association, took only 30 minutes to lay out their arguments.
Ernaut expressed his belief that Internet gaming will eventually be legalized in some form. However, he also said the activity was illegal, even though federal prosecutors have never charged a gambler for wagering on the Internet.
"Lack of prosecution by the Department of Justice should not be interpreted as a lack of interest," Ernaut said.
Until the Unlawful Internet Gaming Enforcement Act, which made it a crime for banks and other financial institutions to process transactions used in online gaming, is reversed, there is no reason for Nevada to pursue Internet gaming.
Backing comments made previously by executives from casinos giants Caesars Entertainment Corp. and MGM Resorts International, Ernaut told lawmakers the federal government needs to legalize Internet gaming before states can weigh in.
"We want this industry to flourish," Ernaut said. "We want partnerships. We're just asking you do it in the right order."
A Washington, D.C., attorney representing the Poker Players Alliance, which announced its support for AB258 before the hearing, disputed claims that the act's passage in 2006 made the activity illegal.
The bill was introduced by Assemblyman William Horne, D-Las Vegas, the committee's chairman. But he was also backed by a bevy of support, including former Assembly Speaker Richard Perkins, a lobbyist for Internet gaming giant PokerStars; former Gaming Control Board member Scott Scherer, who is now a gaming industry attorney; professional poker player Vanessa Rousso; and Tim Craine, economic director for the Isle of Man, the British dependency where PokerStars is licensed.
Craine told the committee the technology jobs brought to the Isle of Man by PokerStars and other Internet gaming companies had reduced unemployment to 2 percent.
In the last five years, Isle of Man has seen economic spending increase from $97 million to $268 million while taxes paid to the country increased from $4.8 million to $30 million.
"These figures are all related to e-gaming," Craine said.
The bill's supporters also included Jeremy Aguero, a principal in Las Vegas financial consultant Applied Analysis. Aguero said the company studied what legalized Internet poker might mean to Nevada. He came up with several scenarios, including if online poker sites located in the state were able to accept wagers from U.S. residents outside Nevada.
One scenario could mean anywhere from $2 million to $3.4 million in new taxes to the state. Another scenario could bring Nevada anywhere from $37.1 million to $65.1 million. Additionally, online poker companies that locate headquarters in Nevada could provide anywhere from 1,180 to 1,900 jobs.
Perkins said that legalizing Internet poker would give Nevada's casino industry a new income stream. He said Nevada needed to get out in front of other states in the legalization of Internet poker.
"All federal efforts have fallen short," Perkins said. "I understand a federal solution is better than a state-by-state solution, but other states could leap-frog us and take these jobs if we wait for the federal government."
Wynn Resorts Ltd. announced a partnership with PokerStars to operate a U.S.-based online poker website should federal legislation allowing Internet gambling be passed.
In a statement released late Thursday by Wynn Resorts, Wynn officials said the companies will work to secure the passage of federal Internet gaming legislation. Wynn operates casinos in Las Vegas and Macau, and PokerStars, which is based in Isle of Man, is estimated to control almost 50 percent of the online poker market.
Wynn Resorts Chairman Steve Wynn said he is now convinced Internet gaming is taking place in the U.S. and it's time to legalize the activity. "As a company that has safely conducted gaming in the US for more than 40 years, we believe that the same can be done for poker on the Internet," Wynn said. tax dollars come home to the U.S."
LAS VEGAS REVIEW-JOURNAL
Comments
Terms & Conditions
The following comments are provided by readers and are the sole responsiblity of the authors. The Review-Journal does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please use the Report Abuse button.
Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 24 hours. Please do not submit a comment more than once.
Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.
RSS
Twitter
Facebook
So Steve Wynn is only just NOW realizing that this has been going on (for about 10 years) What a sharp cookie he must be to notice..... Or is he just realizing there is another way he can pry more money away from the public that he doesn't already do?
Alvin, it just might take a security team too... and a few more you wouldn't understand
mrability, it appears you live in the wrong state if you do in fact live in Nevada. If not, you must have a very boring life with all your negative comments you make each day here.
Raoul.N.Stone right. It may take 5 programmers and 4 server techs and an accountant.
If Alvinjh thinks it only takes four programmers and three basis team members to run an online poker site, then he knows absolutely nothing about the software industry. And by the way, outside of the technical team they just might need accountants, and people for Accounts Payable, Accounts Receivable, Treasury, Purchasing, Human Resources, Marketing....
Online poker will save everything! The programmers (4) and the server technicians (3) will swell the employment force as the revenue pours in from Elko and Beatty!
TAXES! Just think of all the tax money they can steal from players!
Wynn partnering with an illegal gaming enterprise? I can't wait to see what the local gaming commission has to say about this..
Internet gaming & wagering is legal in many countries.However,here in the USA, the 19th century mores of Anthony Comstock(look him up) still govern the morals of this land.
perhaps if internet users as some grade school aged adept can access the proposed poker sites, then all age restrictions should similarly be relaxed for b&m licensed casinos. fwiw, i had created a credit rating when below the age of majority, by mail. that got me a playboy key [original walton street location] before i was technically old enough to be served alcohol.