February 29 2012, Brett Collson

The race for legalized online poker is heating up in the U.S. in 2012. As several states consider bills to regulate and eventually implement an online gaming platform, operators are preparing to capitalize on an exciting and potentially lucrative new market.

Bwin.party digital entertainment figures to be one of the major players once the space opens up. Last October, the world’s largest publicly traded online gambling company joined forces with MGM Resorts International and Boyd Gaming to form an online poker venture in anticipation of legalized online gambling in the states, joining several rival companies with similar ambitions.

Bwin.party co-CEO Jim Ryan recently sat down with PokerNews to discuss the company’s plans once online poker is legalized in the U.S, how it can further use its acquisition of the World Poker Tour, and more.

Last week, we saw two of your partners comment about online poker legislation in the U.S. Keith Smart at Boyd Gaming said regulated U.S. e-gaming is further off than he had hoped. Jim Murren at MGM said he still believes that federal online poker will pass this year. What were your thoughts about those comments?

Well, I guess our perspective is really quite simple. For many years it was a question of if the U.S. government – either at a federal or state level – would regulate online gaming. We don’t think that’s the case anymore. We think it’s a question of when.

Why do we think that? Let’s take a look at some of the industry players in the United States. We saw Caesars make an announcement about acquiring a poker platform. We’ve seen the IGT and Entraction deal. We’ve seen the Fertitta Interactive and CyberArts deal. And as you probably know, we’ve been in the process of marketing Shuffle Master, and all the interested parties in that particular asset have been coming from the United States.

You take that level of activity and combine it with various state efforts that have been initiated since the Dec. 23 DOJ opinion. We’ve seen five states introduce poker bills: New Jersey, Iowa, Hawaii, Mississippi and California. We’ve got Nevada which actually passed a law in December. And then we’ve had much conjecture that there very well could be a federal bill kicking around.

That’s a pretty impressive list of events that would lead one to believe that we’re likely going to see poker be legal in the U.S. in some way, shape or form. We can’t predict whether that’s going to be at a state level or federal level. Either are good. Certainly our preference would be for a federal solution. We think it’s all very positive for poker and for organizations like ourselves.

When bwin.party signed the deal with MGM and Boyd in October, did you have a prospective date that you wanted to have an online gaming platform up and running?

It’s very difficult for us to have determined a date because the launching in the market was going to be determined by a couple things. It was going to be determined by technical standards that we would have to integrate into our platform. We’ve seen that throughout Europe as markets have regulated. Italy had its own set of standards, as did France and Denmark. Those are a couple of the regulated markets that we have recently launched in. And just before the end of last year we got ready for the Spanish market. Each market had unique technical standards.

And then there will be a period where organizations are allowed to get their business affairs in order. That means getting a technical platform ready and going through a suitability review. I think a realistic perspective is that a 2013 launch is pretty sound. At the very least there will be a few states that will have it available at that point in time.

Do you think online poker can succeed at the intrastate level long term?

I think it’ll be a function of the size of the population in the state. I also think it’ll be a function of whether the states that do in fact regulate it allow for cross-state arrangements. Poker is a liquidity game, so the smaller the population the less exciting it will be for the consumer. But we think there are a number of states where it will be a very attractive proposition. Nevada is already there. And California is one of the most logical states to get something done this year. That’s about 38 million Americans right there. That’s a pretty compelling market.

With PokerStars and Full Tilt presumably out of the U.S. for the foreseeable future, do you feel PartyPoker is now the largest brand name in that market?

We did a brand awareness survey in California, Texas, and New York, and we went to the consumers and listed all of the existing U.S. and former U.S. poker brands. That included the likes of PokerStars, Full Tilt, PartyPoker, and World Poker Tour. Unsurprisingly, PokerStars and Full Tilt were No. 1 and No. 2 in terms of being the most recognized poker brands. What was fascinating to us was, despite not having advertised in the market for over five years, PartyPoker was No. 3. And not by a great gulf, either – the brand recognition was significant. No. 5 was the World Poker Tour. Poker Room was No. 8. So when we go into this market, we go in with some pretty strong assets, and nicely positioned.

If and when online poker is legalized in the U.S., do you think PartyPoker could regain the same brand power it had before it pulled out of the market in 2006?

We’re certainly going to have a lot more competitors – at least in the early phase, when there will be a scramble for market share. I think PartyPoker and the World Poker Tour are going to attract a very significant market share, but it remains to be seen what that will be.

It won’t be the 50 percent that PartyPoker once had. I don’t think that’s practical to expect given that fact that you’re going to have mainstream brands like MGM, like Boyd, and like Caesars with the World Series of Poker. It’s going to be a very new competitive set, but I think we can all be fairly confident that, given the brand strength that we’ve had, combined with our willingness to go in and spend aggressively in marketing, we’re going to have a very meaningful liquidity pool.

(WPT CEO) Steve Heller told us this month that ClubWPT would look into expanding its subscription site to offer real-money games if poker was legalized in the U.S. Would you consider combining your resources and major brand names to create a bwin.party/WPT superpower for real-money online poker?

That’s already been contemplated in the arrangements we have with MGM and Boyd Gaming. Specifically what we’ve done with those organizations is we’ve formed a joint venture, and the brands we’ll have in that joint venture are going to be PartyPoker and the World Poker Tour. It is absolutely in our strategic objective to take advantage of the World Poker Tour and its brand awareness in the U.S in the real-money gaming environment.

PokerStars and Full Tilt Poker hired numerous pros before Black Friday to help build their brands, but PartyPoker has gone with a small team of high-profile players like Tony G, Mike Sexton and Kara Scott. Can you talk a little bit about that strategy?

Using professional poker players has long been the strategy for the industry. It’s not new, but I don’t know that it resonates the same way it once did. We have a select few poker players that we use. We have Kara and her big mass appeal, especially in the Canadian and U.S. market. Mike – How could you not use Mike and his connection to the World Poker Tour? If I take you back in history when PartyPoker was No. 1, Mike was an ambassador for Party, so there was a natural connection that existed between the two. And Tony’s important to us because he has that bad boy image that resonates within the community. And he’s viewed as being one of the most compelling poker players to follow. You either love him or you hate him, but everybody follows him.

Will that strategy expand when we get into the U.S.? I’m going to reserve that to the team that’s going to run that group. I have my own views as to how compelling it is to build a staple of professional poker players. What will resonate will be our product and our branding and making this much more of a social appeal to the consumer base – bringing maximum entertainment value. Whether that incorporates poker pros is a secondary objective.

The World Poker Tour was falling on hard times when you acquired the company in 2009. Are you pleased with the progress the tour has made since then?

I think Steve Heller, Adam Pliska and the team have done a phenomenal job. First and foremost, they’ve truly made the World Poker Tour a world event by expanding into the European marketplace and expanding the number of events. We have more televised events, and we’ve got more regional events which aren’t televised but they give the players who see the WPT on TV a chance to build their skills at a regional event.

What we have seen since we’ve taken over is a growth in the number of players buying into the events, which is great. The European connection has been fundamental in terms of Steve and Adam’s objective to take this thing around the globe. The TV viewership of the 10th season is up significantly from the prior years. If you go to a land-based event, Vince and Mike are now physically at the event – that wasn’t the case before. You’ve got the Royal Flush Girls who bring a bit of the bling and sex appeal to the event. So it is about entertainment.

We’ve also got a subscription business that has grown very nicely in the United States and the team is taking a look at the opportunities to take that particular model outside of the U.S. We’re building a very nice real-money poker business with the WPT brand in Europe and that seems to be growing at a really nice rate for us. And then the MGM/Boyd partnership has positioned us to exploit the WPT brand in the U.S. when it opens up for real-money poker.

What are some of your plans for bwin.party and the World Poker Tour in the near future?

Our plans are to continue to accentuate and invest in all of the items I just listed. It is about having events that are truly global so it is a world poker tour. It’s about producing entertaining content and getting the viewership and the number of players at land-based events up. It’s about exploiting the subscription model in the current market and other markets that we’re able to do so. And ultimately, when the U.S. market opens up for real-money poker, it’s about taking that brand into the U.S. along with the Party brand. We’ve got two very powerful brands that will seek to drive and grow in the U.S. and the real-money European market.

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February 27 2012, Brett Collson

Major tournaments have been popping up all over the globe this month. We’ll bring you highlights from a handful of them, plus a story about the return of Poker After Dark, in this edition of the Nightly Turbo.

In Case You Missed It

Phil Ivey bubbled the World Poker Tour L.A. Poker Classic on Monday, but there were still plenty of notables to keep an eye on going into Day 4. Find out who led the way in our daily LAPC recap.

The race is on for the Republican presidential nomination, and the result could greatly affect online poker legislation. Matthew Kredell takes a look at the four candidates and their views of online gaming.

Did you miss Sunday’s World Poker Tour coverage on FSN? Read our WPT recap to get caught up.

Phil Collins took fifth place in the 2011 World Series of Poker Main Event. The man known as “USCPhildo” talked about that and more in Part 2 of the latest Seat Open series.

Twenty-one players survived Day 2 of the World Series of Poker Circuit Palm Beach Kennel Club Main Event. Roman Valerstein led the way, but Brian Hastings and Jeremy McLaughlin were still in contention.

The Epic Poker League Mix-Max event debuted on CBS over the weekend. If you weren’t able to catch the coverage, take a look at our recap.

Joe-Boy Rahme Wins WSOP Africa Main Event

South Africa’s Joe-Boy Rahme added his name to the World Series of Poker history books on Monday when he won the $3,300 WSOP Africa Main Event. The Johannesburg based poker pro bested a field of 218, which included names like Scotty Nguyen, Mark Vos, Eric Herschler, and defending champ Warren Zackey.

James Parker began the final table with the chip lead, followed closely by Gregory Ronaldson, who had already won a WSOPA ring at this year’s series. Ronaldson and Parker had more than half the chips in play when the day commenced, but the two behemoths ultimately fell in fifth and fourth place, respectively. Jason Strauss, who had also won a WSOPA ring this year, finished third after taking a horrendous beat from Rahme. Strauss’ failed to stay ahead of Rahme’s , leaving Rahme and Ivan Pakkiri to duel for the title.

The heads-up match lasted only a few minutes as Pakkiri was quickly all-in preflop with against Rahme’s pocket jacks. The board provided no help to Pakkiri, and Rahme was awarded $158,595 and the coveted WSOP Circuit Gold ring.

“This feels great, I’ve been working toward a WSOP championship for 25 years,” Rahme said after the win. “This is fabulous.”

Here’s a look at the final table results:

2012 WSOP Africa Event Main Event Final Table Results

For a detailed recap of the WSOP Africa Main Event, visit wsop.com.

Poker After Dark Returns

The effects of Black Friday did a number on several televised poker shows in the U.S., including the popular Poker After Dark program on NBC. However, according to various reports, the NBC Sports Network will soon air 24 Poker After Dark episodes that were shot before the show was cancelled last September.

The broadcasts are expected to begin on March 5, featuring four weeks of a cash game and one week (six episodes) of a sit-n-go. There hasn’t been an announcement about the taping of future episodes, but this is certainly a good sign that poker could ultimately make a comeback to mainstream television.

PokerNews will be speaking with Mori Eskandani of Poker PROductions on Tuesday, so stay tuned. Read here for more.

Elie, Campos File Another Motion Before Trial

When Black Friday principles John Campos and Chad Elie appear in court next month, they hope they’ll be allowed to plead their case to a jury that poker is a game of skill.

According to LegalPokerSites.com, Elie and Campos have filed a motion in limine that requests that they be allowed to present evidence to the jury that online poker is a game of skill. The two men face charges of money laundering, fraud, and violating the Unlawful Gaming Enforcement Act (UIGEA) and Illegal Gambling Business Act (IGBA), among other charges, for their roles in the illegal transactions between offshore poker sites and players in the U.S.

Attorneys for Campos and Elie argue that poker is not gambling; therefore, both men should be excluded from the charges regarding the IGBA and UIGEA.

Early this month, Campos and Elie submitted files to motion for dismiss based on the Department of Justice’s opinion that the Wire Act of 1961 pertained only to sports betting. That motion was denied by federal judge Federal Judge Lewis Kaplan, who said the following: “The defendants’ argument that poker is not gambling fails, at least at this stage.”

Read more at LegalPokerSites.com.

California Introduces Online Poker Bill

California took a big step toward legalizing intrastate online poker last Friday when Sen. Darrell Steinberg (D-Sacramento) and Sen. Roderick Wright (D-Inglewood) introduced Senate Bill 1463.

After numerous failed attempts to push an online poker bill through the legislature, this latest effort could see success because of recent changes in the Department of Justice’s interpretation of the 1961 Wire Act.

The bill states that only online poker would be permitted for the first two years of regulation. Upon becoming a law, operators will be able to apply for a 10-year license once the regulatory framework is in place. If approved, operators will pay licensing fees of $30 million, credited against gross gaming revenue proceeds for the first three years of operation.

Read more at PokerNews.com.

Chicago Poker Classic Under Way

Last year, the Chicago Poker Classic at the Horseshoe Casino in Hammond, Indiana, smashed records by drawing more than 6,700 players and awarding $2.5 million in prizes. If the start of the 2012 series is any indication of things to come, those records will be shattered in no time.

The opening event of the 2012 Chicago Poker Classic saw 2,621 entrants take to the felt – more than double last year’s total for the same $240 No-Limit Hold’em Re-Entry event. The massive turnout generated a prize pool of $523,409, and 51-year-old entrepreneur and writer Paul Gibbons went on to take the title and top prize of $97,192.

In the second event of the series, a $350 no-limit hold’em tournament, Paul Han bested an 868-person field to capture the $56,861 first prize. The 26-year-old is a former WSOP Circuit champion but said he was due to win another big tournament.

“It’s about time,” Han said after his victory. “Every year they have this I get far and then run bad at the final table. I’m so happy I shipped one.”

This year’s CPC will award $50,000 cash to the overall points leader of the 12-day series. In addition, a 2012 Chevrolet Camaro V8 will be awarded to the champion of the six-event turbo series, which got under way on Monday.

Check out the Horseshoe Hammond website for the full schedule of events at the Chicago Poker Classic.

Nicky Tao Jin Claims Top Honor at Macau Poker CupMacau Poker Cup

The 2012 Macau Poker Cup came to a close Sunday with the conclusion of the Red Dragon HK$11,000 Main Event. The PokerStars-sponsored event at the Casino Grand Lisboa drew 635 players and, after three days of play, China’s Nicky Tao Jin collected the hardware and top prize of HK$1,092,500.

Jin held a slight lead over Abhishek Goindi when heads-up play began, but the two players took a short break to make a deal. After an agreement was in place, it took only three hands for Jin to put his opponent away. On the final hand of the match, Goindi got his stack in the middle with on a board, but Jin held for bottom set. The turn and river failed to help Goindi, and Jin was declared the winner of the 4th Annual Macau Poker Cup Red Dragon Main Event.

The nine-event Macau Poker Cup set new records for overall player attendance and prize pools as 2,153 players turned up during the nine-day poker festival to create a prize pool worth HK$12.86 million.

The PokerStars Blog has more.

PokerStars Dominates EPT Copenhagen

PokerStars Team Online’s Mickey Peterson bested Team PokerStars Pro Pierre Neuville heads up to win the European Poker Tour Copenhagen Main Event during the weekend. PokerNews’ Sarah Grant caught up with the online superstar after his big win.

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