Business

M Resort's Marnell says he opposes Internet poker legalization

  • Anthony Marnell III

By Howard Stutz
LAS VEGAS REVIEW-JOURNAL
Posted: Jan. 6, 2012 | 7:01 a.m.

M Resort President Anthony Marnell III has come out in opposition to legalizing Internet poker, becoming the second high-profile gaming executive to break ranks with the bulk of the casino industry, which is lobbying Congress to pass online poker legislation.

Marnell made his remarks during a recent interview with Nevada Newsmakers, a statewide public affairs television program. His comments echoed similar sentiments expressed last month by Las Vegas Sands Corp. Chairman Sheldon Adelson.

"I agree with him 100 percent, we're pushing this way too far," Marnell said during a segment that aired Dec. 28. The episode was taped Dec. 13, prior to the Dec. 23 U.S. Department of Justice's announcement that it has reversed a long-standing opinion that the federal Wire Act of 1961 outlawed all gambling across state lines.

Through an M Resort spokeswoman, Marnell declined Friday to make additional comments on the issue.

He told interviewer Sam Shad his opinion was his own and was not that of his employer, Penn National Gaming, which took control of M Resort last June. The regional casino operator gained ownership of the 390-room hotel casino after purchasing the property's debt at a 75 percent discount.

However, in April, Penn National executives told analysts during the company quarterly earnings conference call that they opposed efforts to legalize Internet poker even though Chairman Peter Carlino speculated legalization is probably inevitable.

"My position has long been that online gaming is a bad idea," Carlino said. "A bad idea from whole lots of social points of view. However, I say that the tide may work against us there so we are beginning to look at that very hard. (We have) got to be realistic and practical ... as much as I would like it not to occur."

A Penn National spokesman said Friday the company's position on Internet poker hasn't changed. However, comments from Penn National President Tim Wilmott in the same conference call hold true.

"We do think something down the road at the state level will eventually evolve," Wilmott said. "And we engaged discussions with a lot of different providers of Internet poker applications to assess capabilities and talents and fit with us, as we continue to explore this."

Marnell appeared on Nevada Newsmakers to discuss M Resort and the Las Vegas gaming market. When asked about Internet poker legalization, Marnell said he was concerned the activity could lead to problem gaming and gambling by minors.

"I just can't see a scenario where you can truly secure that from young children," Marnell said. "Once it becomes legalized, it's taking it too far. I think you start to create addictive behaviors in the home that we can't see as operators. We have problem gambling initiatives on the casino floor."

Marnell's views differ from the bulk of the gaming industry. Caesars Entertainment, MGM Resorts International and the industry trade group American Gaming Association have encouraged Congress to legalize Internet poker.

Several casino companies already have agreements with European online gaming operators to start U.S.-based online poker entities if the activity is legalized. In December, Nevada gaming regulators adopted rules that would allow state licensing of online poker providers after legalization at the federal level.

Some industry leaders were hopeful the Justice Department's opinion change on the Wire Act, saying it now only applies to sports wagering, would open the door for online poker legislation.

"That's just my take on it," Marnell said. "I know I'm not in favor of the gaming industry perspective. I just think enough is enough. We don't need to push this farther into the home."

Based on the history of gaming expansion, Marnell said the current push wouldn't end at online poker. If one gambling game were approved, other gaming would gain approval.

"It starts off as a bingo room, then it becomes a full blown Las Vegas casino," Marnell said. "All it takes is time, money and legislation. My opinion is online poker won't be the end of this. It will just be the beginning."

Marnell said online poker is being proposed because states and the federal government have large budget deficits. He said lawmakers need to control spending and cost structures before creating new revenue streams.

"I guess I'm trying to figure out where we are going with this long term," Marnell said. "Are we using this as a method to pay a bunch of bills because the states don't have enough money?

American Gaming Association President Frank Fahrenkopf Jr. on Friday declined comment on Marnell's remarks.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

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  1. Victor.Newman Jan. 7, 2012 | 9:17 p.m. Report Abuse

    Marnell oversaw the loss of millions by the M Resort. Then, Penn Gaming awarded him with the title of President of the property. The only thing this guy should be commenting on is how to run a casino into the ground. Any opinion of his concerning gaming could be culled from a wino on Fremont Street and it would have as much weight.

  2. Joeydirtbags Jan. 7, 2012 | 6:27 p.m. Report Abuse

    Brain - I think you are the bot...except you're programmed with stupidity!! If you are profitable, what's your screename? I'll look you up on sharkscope and BUST YOU!! You're nothing more than a members only jacket wearing, sansabelt hiking, blowhard knit!

  3. tfg Jan. 7, 2012 | 5:07 p.m. Report Abuse

    the brain (mr know it all) you are the same sucker that plays in the highest raked games in town (susposedly). you must work for the paper or you are extremely lonely. think before you speak would be my advise to you.

  4. edb Jan. 7, 2012 | 11:14 a.m. Report Abuse

    The Son stated his position with validity. Get over your jealosy!

    His Father is GREAT NEVADAN, his vision produced oppourtunity for betterment of others, not just Architcture Design, Construction, and Hotels, Casinos, and being Nevada's biggest employer.

    The son will have failures and sucess as time goes by.
    As for the twenty dollar bill, perhaps your father helped you, if not PLEASE do not blame others for your short commings.

    Success is measured by many failures, perservance will prevail.


    Anthony Marnell lll will continue to to be a GREAT NEVADAN as his Father.

    Never met the son, but my path has crossed with the family.

    My sincere hope he is not just playing poker, but on the quest of making life better for others.

    No responce is needed.

    edb

  5. rjgs Jan. 7, 2012 | 10:57 a.m. Report Abuse

    I'm sorry Brain, I keep forgetting: Online poker will create 20 or 30 thousand new, high paying jobs; governments will take in hundreds of millions in new tax revenues; and everyone that plays will make money - no more unemployment! What's not to like!

  6. iamretired Jan. 7, 2012 | 10:47 a.m. Report Abuse

    Internet poker, Nevada should stay as far away as it can from it. I can set up five computers in the same room, all with different ISPS addresses and get into the same poker game online. Imagine what an expert or a MIT grad could do? There is no way that internet poker can be safe from thieves!

  7. fast eddie Jan. 7, 2012 | 8:28 a.m. Report Abuse

    The Brain on Bots ok your Smart. So Brain just go into the MGM walk up to a blackjack table buy in and take out a laptop and tell the dealer you brought a program to help you play blackjack. see what happens? LOL
    I have seen a Player type in a code and all the players at the table had all their cards all of a sudden appear face up.
    I have been in Cheating studios where they had their on IT departments to help with privacy. The Brain could you explain why Ultimate Bet software design experts are now working for major European Gaming Companies? Unless a company gives you the code you have no clue has to whats goining on . Its like Coke giving you their recipe . Brain just because they tell you its been certified to be random ?This has nothing to do with the CODE. Whould online poker be better with Nevada or New Jersey in control YES. Anything is better than whats happing now.

  8. TheBrain Jan. 7, 2012 | 7:33 a.m. Report Abuse

    rjgs - I have played poker, both B&M and online for many years. With respect to online poker I was one of the early players on Paradise Poker back in the 90s well before the online poker craze. I can assure you that the online games are MUCH tougher, as a rule, than in a B&M casino for many reasons (not the least being all the online tools and databases that many top players utilize). I frankly haven't met any online player that is afraid of going to a B&M casino. As for underage, such there are some 18-21 year old college kds playing online but the vast majority are over 21 and could play anywhere they like. Also, do you understand that many overseas casinos/tournaments (like the PCA just starting in the Bahamas) as well as some US indian reservations allow 18 year olds to play? Overall ignorant comments by someone with an axe to grind to everyone should take your comments as such. BTW, I'm almost 54 so certainly no "young gun" but I have no problem sitting down online or face to face with any of them - sounds like you are maybe the one scared to play.

  9. TheBrain Jan. 7, 2012 | 7:29 a.m. Report Abuse

    Of couse many casino executive, except maybe those with a branded poker site like Caesara, are against internet gaming. Duh - it would hurt their bottom line! That is no reason not to have it and it will be coming whether they like it or not. The Federal government FINALLY admitted what most of us in the poker community have known for years and that is there is no Federal law prohibiting on-line gaming or stopping ANY state from allowing within their borders and for their residents. A Federal court held years ago the Wire Act didn't apply. Then you get into juridictional issues (as ruled by the World Court) and the Feds have a losing hand. While any state can implement online gaming (just like they can currently allow casinos, authorize games, set tax rates, etc) for their residents (and I expect at least 1 to do so in 2012) there does need to be national standards which would ultimately allow all US residents, provided their state approved it and worked out a tax arrangement with the provider, to play on-line. The entire arguement that "children will play" is weak when you have a multi-billion dollar ecommerce business today and kids could get on there just as easily to order things (including liquor and wine over the Internet in some locations). As for "fast eddie" you are either ignorant, a losing online player looking for someone to blame or a shill for the B&M casinos. Sure there have been scams (Full Tilt come to mind) but authorizing and regulating the industry would stop that. Also, on-line sites are better at stopping collusion via technology than B&M sites. Finally you talk about bots - as an experienced player that are many ways to determine if there is a bot and also to play them in a manner that is profitable - again it comes down to knowing what you are doing which obviously you don't.

  10. rjgs Jan. 7, 2012 | 3:14 a.m. Report Abuse

    Marnell, like Adelson, gave a number of very good reasons for not wanting online poker. But you guys that do want it can only attack the messenger. What's with you guys? Can't make it in a poker room? Competition too tough for you? Yeah, you could probably beat up the underage rookies that would come online to play. That's what it's all about.

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