Wed, 03/30/2011 – 01:26 – PokerPages Staff

The first owner of a Las Vegas casino to publicly support legalizing Internet poker has spoken out. South Point Hotel and Casino owner Michael Gaughan has recently expressed his view that online games and poker are definitely coming and he has no doubt in his mind about that.

He was speaking as Nevada Assemblyman William Horne’s Assembly Bill 258 is up for consideration by the state legislature. The bill would allow online gaming to be licensed and regulated by the Nevada Gaming Association and is regarded as the most poker-friendly bill to be proposed in the U.S. 

Although supported by the giant online poker site PokerStars, it is opposed by another gambling behemoth – Caesars Entertainment. When Caesars declared its opposition, hopes for the bill’s survival began to fade and most observers assumed that other bricks-and-mortar casinos would simply follow suit. Until, that is, Mr. Gaughan spoke out and he’s made it pretty clear exactly why he supports the bill. AB 258 would, he said, “make us a pioneer in the nationwide movement.” By passing the bill into law, Nevada would become a leader the rest of the country may wish to emulate.

Financially, legalization makes a lot of good sense especially given that Nevada’s finances are the stuff of nightmares and nervous breakdowns.  There is a yawning $1 billion-plus deficit to be made good and unemployment in the state currently runs at 13.5 per cent. In one move, the legalization of online poker would generate an additional $500 million for the state budget and bring many desperately needed new job opportunities in its wake.

So far, bills that have been discussed at either state or federal level have contained wording that many poker enthusiasts find unnecessarily frustrating, desperate though they are to legitimize their game. Senator Harry Reid’s bill, which fell after the mid-term elections last year, included a punitive 15-month blackout period, during which no one living on American home soil could play online. Congress is currently considering a licensing bill proposed by Representative John Campbell, but it contains wording to imply that current operators are guilty of illegal gambling activity. These inclusions appear to be aimed at appeasing opponents but would have serious consequences should they succeed in becoming law.

By contrast, Nevada’s AB 258 specifically states that it will not discriminate against existing operators (possibly one major reason why PokerStars is supporting it so fulsomely). The measure would also allow the Nevada Gaming Association to enter into agreements with other jurisdictions, such as foreign countries, where online gaming is not illegal. Additionally the Nevada Bill makes provision that should other states pass bills legalizing online poker, they would be included too. Such a development would place Nevada, as Mr. Gaughan envisages, at the very heart of the online gaming industry in addition to its central place in the bricks-and-mortar casino business.

Commenting on PokerStars’ and Full Tilt Poker’s inclusion in the Nevada system under the bill, Gaughan said that he didn’t mind at all stating that no one group of people should be eliminated. Gaughan considers the bill a good move for the state, and believes it will benefit smaller casinos there. Caesars has got some opposition to its “Federal only” approach at last, it seems.

March 31 2011, Matthew Kredell

The partnership between Wynn Resorts and PokerStars announced last week sparks optimism that passing a federal online poker bill may be possible even with a Republican-controlled House of Representatives, and that this future regulated environment will be one in which poker players can thrive.

Steve Wynn, once a staunch opponent of Internet gambling, is as outspoken and influential in political circles as anyone involved in the casino business.

“It changes a lot of the dynamic here in Washington,” said John Pappas, executive director of the Poker Players Alliance. “Wynn is a well-regarded executive here in Washington. He has a lot of views, not just on gaming policy but on physical policy, that particularly are regarded well by Republican lawmakers. It will be helpful to have someone like Steve Wynn engaged in debate and standing on our side so clearly.”

A website that tracks political contributions indicates that Wynn has donated nearly $600,000 to politicians and political committees in his lifetime. And, while he favors Republicans, he often supports Democratic candidates, including Senator Harry Reid.

Wynn played a leading role in transforming Las Vegas into an upscale resort location in the 1990s. Pappas said that Wynn has an exceptional lobbying team in D.C. and that the PPA has already begun to liaise with them to figure out ways to work together.

In the past, brick-and-mortar casinos have had an adversarial relationship with online poker operators. Even in versions of the Harry Reid proposal floating around at the end of last year, it seemed like the major Las Vegas casinos were trying to take over online poker while excluding operators currently serving the U.S.

That is a scary proposition for poker players because PokerStars and Full Tilt Poker rose to the top of the online poker marketplace by offering dependable service, attractive incentives, and great customer service. They treat poker players right.

If federal regulation passes, Wynn plans to launch PokerStarsWynn.com. With Wynn’s backing, it seems much more likely that PokerStars will be able to secure a license, and that is a strong sign that poker players will be able to prosper in a regulated U.S. environment.

“I don’t think Wynn would align himself with a company he views has blatantly broken U.S. law,” Pappas said. “I think he would tell Congress that it’s not in the country’s best interests to exclude anyone from the marketplace but rather to throw a big net out there and try to get as many of these sites operating and paying taxes in the U.S. as possible.”

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