Las Vegas’ big casino operators are poised to take their wares online.
Nevada has become the second US state to formally legalize Internet gambling—poker only to start with, and only within the state— with the unanimous approval of the Legislature late last week, capping a process that began in spring 2011 when lawmakers voted to approve Web wagering pending an OK from the federal government. Federal approval hasn’t been forthcoming, however, and isn’t likely any time in the foreseeable future, despite the efforts of Nevada senator and US Senate majority leader Harry Reid to get a poker bill through Congress, thus necessitating Nevada’s decision to go it alone.
Las Vegas’ land-based giants have long lobbied for the legislation, ensuring it would pass, and Gov. Brian Sandoval, who is a proponent, will sign the bill into law, possibly as early as this week.
“It is vital that we move quickly, not to be first for the sake of being first, but to do so to ensure that we continue to be responsive to the opportunities presented by changes in technology and gaming culture,” Mr Sandoval said last week in testimony before lawmakers in the capital of Carson City.
The New Jersey Legislature is expected to vote on similar legislation this week after Gov. Chris Christie indicated he would sign a bill incorporating his desire for a higher tax rate and a 10-year sunset provision.
Delaware legalized the industry last year and is expected to start taking wagers online this autumn.
The key for the Nevada legislation is that allows the state to bill enter into revenue-sharing agreements with other states to enlarge the potential player pool. Pete Ernaut, a lobbyist representing the Nevada Resort Association, a trade group representing the land-based industry, said expanding the customer base was key, Nevada being one of the least populous states in the country, ranking 35th with only about 2.7 million people.
“It’s imperative for the success of this that we compact with other states because we don’t have a universe of players,” he said. While the benefit for other states, he told the Las Vegas Review-Journal, is Nevada’s “most mature regulatory infrastructure.”
“We have the most mature financial, auditing and collection capabilities, much greater than some of those states, and they have the players.”