• Bloomberg Business Week @BW | Betfair May Boost Profit With Fixed-Odds Sportsbet
• Fox5 LasVegas | Mobile wagering expands to iPhone {Leroy’s Sports Books/American Wagering}
• The Hill | Let states legalize online gambling to stimulate the economy | h/t @taxdood
• Indian Country | Internet Gaming Tops NIGA Agenda | h/t @taxdood
• Irish Times @the_irish_times | FTP Dublin subsidiary makes 180 positions “redundant”
• Bloomberg Business Week @BW | Online Poker Should Be Dealt a Fresh Hand With Regulation
• Charleston Daily Mail | Lottery funding goes to (WV) casino slots upgrade | h/t @casinocityvin
• Inside Poker Business |  Poker Networks 2012 | h/t @InfiniteEdgeKim
• @hardboiledpoker | Reports from the (FTP) Department of Redundancy Department
• @InfiniteEdgeKim | Buyers Beware {handy shopping tips for iPoker purchasers in US}

Watchit

• Livefeed @ Congress | “iGaming: Is There A Safe Bet?” | http://energycommerce.house.gov/
  The House Energy and Commerce Committee will be holding a hearing Oct. 25 called “iGaming: Is There A Safe Bet?” at 10:30AM EST in the Rayburn House Building RM 2123. Details of this hearing (and witness list – ty to @WriterJen for pointing this out) may be found on the Committee website -> here.
• @AGAupdate posted this testimony from Frank Fahrenkopf for tomorrow’s congressional hearing.

Witness List:

• Parry Aftab | Member, Board of Advisors Chairman | FairPlayUSA
  —> Witness Testimony
• Ernest L. Stevens | Chairman | National Indian Gaming Association
  —> Witness Testimony
• Keith Whyte |Executive Director | National Council on Problem Gambling
  —> Witness Testimony
• The Honorable Alphonse D’Amato | Chairman | Poker Players Alliance
  —> Witness Testimony
• Kurt Eggert | Professor of Law| Chapman University School of Law
  —> Witness Testimony
• Dr. Dan Romer | Director, Adolescent Communication Institute
  —> Witness Testimony

Ponzi or no Ponzi, FTP, in AGCC’s evaluation, has (had) *issues*.

Ground 1:  Subsidiaries Vantage Limited, Filco Limited, Oxalic Limited, and Orinic Limited with “regard to eGambling licensee’s current financial position and financial background, are no longer a fit and proper person to hold an eGambling licence.”

Ground 2: Same as Ground 1 but for Koylma Corporation as an associate of Vantage Limited, Filco Limited, Oxalic Limited, and Orinic Limited.

Ground 3: Same as Ground 1 but for Pocket Kings as an associate of Vantage Limited, Filco Limited, Oxalic Limited, and Orinic Limited.

Ground 4: The subsidiaries “failed to notify the Commission in writing within 48 hours of serious incidents negatively affecting the operations of the eGambling licensee.”  These were listed as unreported incidents:

• $331 million was seized between 6/28/2007 and 6/20/2011 by the US DOJ, such that “all such frozen funds were represented and treated as cash in the accounts of Vantage Limited.”
• “At the 17th June 2011, Filco Limited had approximately $15 million US Dollars unavailable as they were the subject of an internal bank compliance review.”

Ground 5:  With regards to the non-payment of requested player withdrawals: “you [FTP] have failed to repay, at the request of registered customers, funds standing to the credit of that customer as directed by the customer.”

Ground 6: In addressing the question of FTP’s operating balance: FTP “operated otherwise than in accordance with your approved internal control system namely a failure to ensure sufficient funds are held in the company’s account to cover all balances held by the Company on behalf of its customers” and had promised and failed to ensure that “this account [was] not used as a security for any other operational liability”.

Ground 7: Lists the complaint that FTP allowed incomplete deposits as part of a bankroll: Vantage Limited “by virtue of permitting customers to effect gambling transactions when you [FTP] were not in possession of the money deposited by those customers who had utilised the ACH electronic bank transfer facility and you were aware that no payment processor had been able to collect the funds.”

Ground 8: “You [FTP] submitted reports that failed to detail the said financial position in that they wrongly asserted compliance with the required financial ratios.”

FTP representatives Craig Ferguson, Tony Coles, and Nick Nocton were present on 9/19/2011 and 9/20/2011 at the pre-hearing applications.  The doc states: “FTP elected not to be present at the regulatory hearing and its legal representatives were therefore instructed not to be present at the regulatory hearing.”

Why would FTP decide not to be present at the regulatory hearing?  Who would have need to have attended if they had?  Were they deterred from appearing by the DOJ addition of the FTP Board of Directors to the US civil suit against the company announced on 9/20/2011?

AGCC notified FTP on 9/26/2011 that they decided to revoke their license.  “FTP’s representatives were present at the regulatory hearing but elected to offer no explanation or comment” despite being “given the opportunity by the Commissioners on the 27th September 2011, pursuant to regulation 49(3) of the Regulations, to offer any explanation and make any such other comment as FTP wished.”

To me, the most intriguing bit of *new* info in this document was that FTP not only did not attend the actual regulatory hearing, but offered no comment after the license was revoked.

Important links:
The full press statement from AGCC dated today 9/29/2011.
The link to a 26 page “Determination Report” showing the 8 “Grounds” upon which the license was revoked.

AGCC Press Statement (in full):

AGCC Commissioners, sitting as a tribunal, have today revoked the licences of Vantage Limited, Filco Limited and Oxalic Limited, trading as Full Tilt Poker (FTP), with immediate effect. This follows the earlier suspension of the licences on 29th June 2011.

At a hearing held in London over six days, it emerged that FTP had fundamentally misled AGCC about their operational integrity by continuously reporting as liquid funds balances that had been covertly seized or restrained by US authorities, or that were otherwise not actually available to the operator. Serious breaches of AGCC regulations include false reporting, unauthorised provision of credit, and failure to report material events.

At the commencement of these proceedings on 26th July AGCC made clear its preference to hold the hearing in public, to the benefit of players and media alike. However, the tribunal was persuaded that the hearing should be held in camera on the basis of claims by FTP that this would maximise the chance of a commercial rescue of the business for the benefit of players. For this reason an adjournment of 54 days was allowed.

It is important to note that the revocation of FTP’s licences does not, as has been suggested, prevent a reactivation of the business under new ownership and management. Unresolved claims by players against FTP become a matter for the police and civil authorities. Now that FTP’s licences have been revoked, AGCC no longer has jurisdiction over these companies.

The licence of Orinic Limited, a recently added geographic sub-division of the FTP poker room, remains suspended.

Here are some of the best links and Cliffs from the last 24 hrs+.

Read
AGA releases iPoker code-of-conduct standards (9/20)
The DOJ amended civil complaint with FTP Board added (9/20)
The memo about the amendments via PokerStrategy.com (9/20) – here
Forbes breaking news – Feds call Full Tilt Poker a Ponzi Scheme (9/20)

CNN headliner (9/20) – Poker site accused of $440 million Ponzi scheme
Q&A by @Tom_Dwan on 2p2 (9/20) – 2p2 thread
CNET (9/20) – FTP a Ponzi scheme? Like Groupon?  (is virtual money safe?)
WSJ full story by @AlexandraBerzon (9/20) – US Poker Site Stacked Deck
NYTimes (9/20) – Poker Web Site Cheated Users, US Suit Says
PPA Statement on FTP (9/20) – presser
Pokerati by @GamingCounsel – Under Pressure (Is this Ponzi a Ponzi?)
Boston.com – After inquiry, Frank gives up campaign money … (PPA and FTP)
NewYorker – PokerPonzi++ – (perspective on Chris Ferguson)
Rakeback.com – Tom Dwan Speaks Out
First words by @Rafe_Furst – Open Letter
Epic Poker statement – Epic Committee indefinitely suspends Lederer and Ferguson
CalvinAyre – UPDATE – FTP AGCC Hearing (announcement soon ?? on Alderney site)
WickedChops -EPL Suspends Lederer and Ferguson
PokerStrategy.com – Jeff Ifrah on Ponzi + FTP License + EPL

Listen
@Tom_Dwan does PokerNews podcast (9/20) – podcast -and- Cliffs of interview
@ftrainpoker and @wickedchops – Terrible Tuesday Podcast

Watch
AGA ShadierPoker info-propaganda piece (9/20) – @Pokerati post
CNBC  (9/20) – Darren Rovell clip
Fox Business  – @Tom_Dwan interview

Good Cliffs
@SubjectPoker – Cliffs+ by NoahSD
PokerStrategy.com – @PokerSmell, @Barry_Carter Cliffs+

This is a summary of the situation from an article in the Baltimore Sun:

The indictments, returned late last month and unsealed Monday, are the result of a two-year sting operation by the Homeland Security Investigations in Baltimore, a division of U.S. Customs and Immigration enforcement. The agency set up a phony payment processing business in Atlantic City and spent two years infiltrating the world of illegal online betting.

Agents ultimately handled more than $33 million in transactions and uncovered a thriving criminal community in Maryland and beyond: “There are numerous individuals in Maryland who have authorized payments to these [foreign] businesses,” claims one agent’s sworn affidavit, filed with court records.

Charged in the indictments are ThrillX Systems Ltd. and owners Darren Wright and David Parchomchuk, both of British Columbia, Canada; and K23 Financial Services (known as BMX Entertainment), run by defendant Ann Marie Puig, of San Jose, Costa Rica. They’re all charged with running an illegal gambling business and money laundering through various Web sites seized Monday, including Truepoker.com and Funtimebingo.com.

Banners saying the sites had been shut down were expected to replace the websites Monday, though they had not yet been posted by mid-afternoon

The following links are the current stories on the subject:

Full DOJ press release -> OPERATORS OF INTERNET GAMBLING SITES AND THEIR BUSINESSES INDICTED FOR RUNNING AN ILLEGAL GAMBLING BUSINESS AND MONEY LAUNDERING (h/t @Kevmath)

Article in Baltimore Sun -> Baltimore feds target Internet gambling (h/t @GamingCounsel)

Article in The Republic -> Gambling web sites, international bank accounts seized in federal sting (h/t @Kevmath)

Maryland criminal code link cited -> Section 12-102 in Maryland Criminal Law Code (h/t @AlexRipps)

Yesterday I was approached by press asking me what online players were feeling about the operational shutdown of the three major poker brands, and I did not feel at all qualified to answer, except to maybe related aspect of the conversations I have had with those that do. Still I thought the perspectives of real people that have had their careers taken away was one that is one worth telling, and one that might help drive the successful legislation of poker by federal and/or state governments, similar to what has been done recently in the District of Columbia.

I am also concerned that the federal government will do nothing to help people recoup their funds that are offshore, should payout be impeded. Even the bill draft floated around Congress by Harry Reid contained a specific plan, in the event the government passed the bill, and sites were shut down for “blackout”.

I tweeted asking for input, and I received an email from a Minnesotan online poker professional, Danielle Andersen, and am attaching her thoughts below.

If anyone else wants to relate about how this impacts their lives, as a player, media member, poker coach, or anyone in the poker industry, please email me at scar@scarletlv.com. I won’t share anything unless you give me permission to do so.

Scarlet Robinson
@scarlet_lv

My name is Danielle Andersen and prior to yesterday, when the DOJ swooped in and essentially cut access to internet poker sites for American players, I played poker for a living. I started playing poker in college, for fun with friends. When it became apparent I had a natural talent, I deposited exactly $50.00 online. That was in 2005 and to this day, I haven’t deposited more than that initial $50.00

I played no-limit cash games online under the screen name “dmoongirl.” The income I made playing online poker allowed me to pay my way through nursing school. I graduated in May, 2010 as a registered nurse. My job as a poker professional also allowed my husband to complete his schooling. He will finish his teaching licensure in physical education this spring and was set to return to graduate school this fall to obtain his masters degree in health, but now I doubt we can afford it.

Right now I’m in shock and I’m not sure what my plan is. I will probably start applying for nursing jobs but the market is tough in the Southern Minnesota area I live in, and with no experience I’m not sure I’ll find anything right away. I could move to Vegas and play live poker, but I can’t bear the thought of taking my three year old away from the extended family whom he adores and leaving him is not an option. Right now some of my money is tied up in the poker sites and I’m not sure when or even if, I will ever get it back. I’m scared for my families future and I can’t help but feel very betrayed by my own government.

For more detail on the situation and how I’m feeling about the future you can check out my blog -> http://www.cardrunners.com/blog/dmoongirl

A snippet from the Wynn presser is here:

LAS VEGAS, April 15, 2011—Wynn Resorts, Limited announced today that it terminated its alliance with PokerStars, the online poker company. The decision was reached as a result of the indictment unsealed by the U.S. Attorney for the Southern District of New York.

– PStars suspended money play due to “legal developments there” in US
– “player balances are safe”
– website has been “moved to pokerstars.eu”

<note: I’m chasing my last FTP rungood right now though – it’s not closed yet!>

Full text (emphasis added):

Full Tilt Poker Supports Poker Players And Its Chief Executive

Dublin Ireland (April 15, 2011) -  Full Tilt Poker is saddened by today’s charges against its CEO Raymond Bitar and offers its full support to Mr. Bitar and Nelson Burtnick. Online poker is a game of skill enjoyed by tens of millions of people in the United States and across the world. And, Full Tilt Poker remains as committed as ever to preserving the rights of those players to play the game they love online. Mr. Bitar and Full Tilt Poker believe online poker is legal – a position also taken by some of the best legal minds in the United States.

Full Tilt Poker is, and has always been committed to preserving the integrity of the game and abidingby the law. “I am surprised and disappointed by the government’s decision to bring these charges. I look forward to Mr. Burtnick’s and my exoneration,” said Mr. Bitar.

Unfortunately, as a result of this action, Full Tilt Poker has decided that it must suspend “real money” play in the United States until this case is resolved. However, Full Tilt Poker will continue to provide peer-to-peer online poker services outside of the United States.

Poker 4/15: An FAQ
by Scarlet Robinson, WASHINGTON DC

Can you please give me the cliffs of what happened today?
Indictment
Eleven defendants including the founders of PokerStars, Full Tilt Poker, and Absolute Poker were charged by the U.S. government with “bank fraud, money laundering, and illegal gambling offenses.”

This is the press statement released by the Department of Justice today -> here
This is a copy of the full indictment -> here

Those indicted:
Isai Sheinberg, Paul Tate -> PokerStars -> status: not in States
Raymond Bitar, Nelson Burtnick -> Full Tilt Poker -> status: not in States
Scott Tom, Brent Beckley -> Absolute Poker -> status: not in States
Ryan Lang, Ira Rubin ->”payment processor” -> status: not in States
Bradley Franzen -> “payment processor” -> expected for arraignment
Chad Elie  ->”payment processor” -> arrested in Las Vegas
John Campos-> SunFirst Bank -> arrested in Utah

Domain Seizure
Five poker domains were seized by the government, and these are in the process being redirected to the following graphic -> here

Not everyone in all of the states are receiving this graphic yet because it can take up to 24 hrs for the DNS entries to update depending on location.

Domains seized:  pokerstars.com, fulltiltpoker.com, ub.com. ultimatebet.com, absolutepoker.com.

Civil Suit
The United States also filed a civil suit against the poker companies, their assets, and the assets of several of their payment processors.

Civil suit -> here

Restraining Orders Against Accounts
Restraining orders were issued against more than 75 bank accounts utilized by the Poker Companies and their payment processors.

Ok…. what does this mean *right now* to me as a poker player?
Well, those domains for PStars, FTP, and UB are slowly being redirected state-to-state so you won’t be able to access the websites, or download software from the sites.  I’m still able to see the original sites, but in a day or so I will also see the “DOJ graphic.”  So assuming you have your poker software *installed*, you can still at this point log in to these sites.

PokerStars as a company seems to has down all of their play for money, perhaps on their own accord, but free money is accessible (if anyone cares about this today), and their are rumors that this shutdown is not going to be limited to the United States.

Reports seem to indicate to Full Tilt Poker and UB for money play is still available.

Smaller sites Bodog, etc. directly unaffected at present, I wonder if they share payment processors with the big three?

What about my money on the site?
I don’t know.  Would guess a good number of players will try to remove money off these sites in a panic such as this.  It’s unclear yet if there are any more issues than normal in getting money off these three sites.  Considering 75 bank accounts for the poker sites have been served with restraining orders, obviously their cashflow to pay with has been limited, and one might wonder how motivated they will be to pay given the current state of affairs.  A civil suit is against payment processors has also been issued which is bound to interfere with payouts.

It’s really unclear how these companies will choose to respond in the interim, and what happens if the companies go belly-up.

PokerStars is closed for money play. Will the sites shut down when I use my software for Full Tilt and UB?
I don’t know.  FTP and UB may choose to limit to free money play the way PStars has today.  Or they may ignore the whole situation until the issue is forced.  The civil suit has filed against their assets so they might seize the hardware offshore perhaps.  As to the domains, new ones might be created by these sites (i.e. fulltiltpokererz.com or something) to get their websites back up.

Chris Krafcik, @CKrafcik, editor from Gambling Compliance, tweeted that the Full Tilt Poker has decided that it “must suspend ‘real money’ play in the United States until this case is resolved.”  To time of this press – I can still play and am burning my measly bankroll on FTP.

Um…. but this is serious, right?
Yep. These international companies are being compromised from the inside out, top to bottom.  The government is effectively trying to dismantle the whole system.  The completely compromises the brand, internationally not just in the U.S., by reputation, as well as operation and money flow. Their founders have been charged along with those that are accused of aiding in payment.

Why did this happen now? Seems awfully sudden?
No, the DOJ and government have been building these cases for years.

I heard some rumblings that someone gave up the goods on these sites.. Tzvetkoff?
Read this -> Poker Indictments: Daniel Tzvetkoff May Have Given Up The Online Poker Industry To The Feds

What about PokerStars-Wynn and Full Tilt-Station alliances?
Sources from WSJ/media have said that Wynn and Station are going to find their way out of both of these compacts.

Steve Wynn (last week): “What difference does it make what PokerStars or the Justice Department says?”

I thought we were pushing for federal and state level legislation.  Things seemed to be going well in the states like Nevada, DC, Jersey, and progressing in others, and a federal bill was presented.  Is that not going to happen now?
In my opinion, this really isn’t resulting from the push for legislation nor does it mean that chances for federal or state level legislation to pass are less likely, but anything that happens within a system, politic or poker, will have effects.  I am actually more hopeful that federal legislation will come to pass in due time after today’s events.  Now we are entering into a time of quasi-blackout.

PPA Comments on Federal Action Against Online Poker Companies
WASHINGTON, DC. (April 15, 2011) – Former Senator Alfonse D’Amato, Chairman of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, issued the comment below on today’s announcement on federal action taken against online poker companies.

“On behalf of the millions of poker players across the country, we are shocked at the action taken by the U.S. Department of Justice today against online poker companies and will continue to fight for Americans’ right to participate in the game they enjoy. Online poker is not a crime and should not be treated as such. We are currently gathering all of the information around today’s announcement and will offer detailed analysis when the full facts become available.”

Because where else could billionaires come to grips with their future together but on a fabulous yacht in exotic locations and make the deal (surprisingly) even-steven 50-50?

I couldn’t help but think of Vardi’s post as if told in a novella….

When Scheinberg Met Steve

Chapter 1: The First Meeting

Nearly two years ago billionaire Las Vegas casino mogul Steve Wynn met Isai Scheinberg, the founder of PokerStars, the world’s biggest online gaming firm, for the first time. Scheinberg generally avoids traveling to the U.S., but the meeting took place on Wynn’s boat while it was anchored in the Mediterranean Sea. Over a three-hour lunch, Scheinberg tried to convince Wynn that the two of them should work together to regulate online poker in the U.S. with an eye toward setting up a joint venture.

Chapter 2: Relationship Doubts

It was a tough sell. Wynn had for years opposed online gaming. He was not a big user of technology. When Wynn needed information from the Internet he would just ask his secretary to find it. He also thought it would be tough to regulate online poker.

Chapter 3: Playing It Cool

During their lunch Wynn found Scheinberg to be quiet and reserved, carefully precise with his language and paying close attention to detail. Still, Wynn didn’t take the meeting too seriously. He did, however, take up Scheinberg’s offer to learn more in the ensuing months about how PokerStars conducted business. Wynn says what he learned shocked him, especially the company’s ability to identify any abnormal activity on its web site and stop it.

Chapter 4: Turning Point: Enter Reid

But the real turning point for Wynn came last year when Nevada Senator Harry Reid called Wynn to signal he was changing his mind about online poker. Wynn had no idea who put the issue before Reid, but he realized Reid was serious.

Chapter 5: We Meet Again

Scheinberg, meanwhile, continued to engage Wynn and the two met again on Wynn’s boat last year. This time the boat was anchored off the Bahamas and Wynn was taking Scheinberg’s proposals very seriously. During their discussions, Wynn asked Scheinberg why he was eager to change the status-quo in the American market. After all, PokerStars is making massive profits in the unregulated U.S. market, where it only has one serious competitor, Full Tilt Poker

Chapter 6: Let’s Get Hitched!

Wynn eventually agreed to work with Scheinberg toward establishing a joint venture that would be split 50-50, PokerStarsWynn.com, which was announced in March. Wynn says there is a written contract that obligates him to be responsible for the joint venture’s regulatory compliance if online poker becomes regulated in the U.S. For now PokerStars is getting a powerful ally who has been close friends with Senate Majority Leader Harry Reid for some 40 years.

Chapter 7: Shades of Grey

Wynn has clearly educated himself about the grey legal environment facing online poker firms like PokerStars. He brushes off the fact that his new strategic partner operates in the U.S. while the Justice Department takes the position that facilitating for-money online poker violates U.S. law. “In the United States of America the Justice Department has an opinion but several states have ruled and courts have agreed that poker is a game of skill, it’s not gambling. PokerStars rests their argument on that,” says Wynn. “I say there is a bit of sophistry here clearly. What difference does it make what PokerStars or the Justice Department says? The point is millions of people are playing poker and they are going to continue to play poker legally or illegally.”

Chapter 8: But What of Our Future?

Still, Wynn doesn’t think getting a Republican-controlled House of Representatives to approve online poker betting will be easy. “I don’t have any idea at this point,” says Wynn.” I know that as a nonbeliever I was convinced by the logic of the argument. And when I learn something and change my mind I may have the naïve notion that other people might be enlightened by the facts themselves. But that doesn’t mean I am right, especially in Washington.”

Nearly two weeks after the deal was announced, Steve Wynn told us all why he approved it.  If Reid, with the help of PokerStars, has made Wynn a believer in the future of iPoker, it is hard to believe that federal regulation is just a dream.

It kicked off a major rush of online poker activity in the state of Nevada today.

At the hearing, witnesses giving testimony in support of the bill included Vanessa Rousso, who made the obligatory “poker star” (pun-intended) appearance.  She gave a rather harried and then hurried Online Poker 101 primer to Nevada Legislature, who by all appearances needed it – one state rep asking during the hearing for clarification on the difference between “video poker” at a casino and “online poker”.  There were some questionable large quotations of gargantuan customer bases and revenue projections by Applied Analysis, revelations of the wealth iPoker has provided the Isle of Man, and an infomercial reassurances from the Aristotle group (whose client is PokerStars) that their INTEGRITY age verification software could protect Nevada children from gaining access to iPoker.

Or – in short – a whole ton of high-end testimony that the backers of this bill would surely like to have presented. No vote was held in the Assembly Judiciary.  The next step per @RindelAP is that AB258 will proceed to the committee’s “work session” for amendments; date to be announced.

What I was truly intrigued by was the testimony of the “objector”, Pete Ernaut, representing the Nevada Resort Association, who seems to be the public voice for at least some of the Nevada casinos.  Ernaut did not testify against iPoker, but opined that Nevada should not pass their own bill, but rather wait for federal legislation.  He agreed, when questioned, that the federal process may be indeed too slow for Nevada to have competitive advantage.

His solution? A “re-ordering” of things where Nevada doesn’t need new legislation to begin building their advantage, and can begin planning for business without federal legislation like #campbill already in place.  He referred to some previous internet gambling  legislation in November 2001 named AB466 (see full bill text).

Speaking of Nevada casinos establishing business in the online poker market – just on the heels of the AB258 iPoker hearing, the Nevada Gaming Commission voted unanimously this afternoon after a two-hour discussion to put the final stamp of approval on the 888-Caesars suitability to continue their relationship per this story by @HowardStutz for the Las Vegas Review Journal.  The 888-Caesars final hearing and vote was scheduled so soon after the AB258 hearing that local journalists in Vegas had to rush from one hearing to the next.

Later in the evening, the Vegas-based Wynn Resorts announced a online partnership with none other than – PokerStars.  A separate article again by @HowardStutz for the Las Vegas Review Journal states that “Wynn Resorts Ltd. announced a partnership with PokerStars to operate an a U.S.-based online poker website should federal legislation allowing Internet gambling be passed.”

Whether or not entities in Nevada can or will take action citing prior legislation without a bill like a state-level AB258 or a federal bill like#campbill is unclear.  Today the process for such a new state-level bill was edged along, NGC blessed a deal between 888-Caesars on their own, and a major Las Vegas casino company announced an alliance with PokerStars asking for federal blessing.

Here is the complete statement from PPA below ->

Nevada Internet Poker Bill is Good for Players and State

PPA Applauds Chairman Horne and the Judiciary Committee for Holding Hearing

WASHINGTON, DC. (March 24, 2011) – The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide and more than 16,000 in Nevada, today commended Nevada State Assembly Judiciary Chairman William Horne for hosting an informational hearing on A.B. 258, a bill to enact provisions governing the licensing and operation of Internet poker.

“Our organization has reviewed state initiated Internet poker bills that have been introduced from coast-to-coast, and A.B. 258 is the first to earn our support,” said John Pappas, executive director of the PPA. “While it is still our preference to have a federal bill that allows for poker players from across the country to benefit from the regulated marketplace, the new Nevada bill is the best attempt at the state level to address the consumer concerns with intra-state regulation.”

Key player-friendly aspects of A.B. 258 include:

· Provisions to expand player pools through state and international compacts

· Seamless transition to a regulated market so that players are not left without a place to play online poker during the licensing period

· Ensuring no new crime is created that penalizes players

· Imposing reasonable tax rates on operators which will keep player costs down and playing benefits up

· An open and competitive licensing process that will not lead to anti-consumer monopolies

“To date, this bill represents the best possible approach to intra-state regulated Internet poker. It contains many of the elements we have called for in other state and federal proposals,” said Pappas. “The bill is also geared to maximize economic growth in Nevada. An economic impact study will reveal that tens of millions in annual tax revenue could be raised and that regulated Internet poker could provide billions in other economic stimulus for Nevada. It will be hard for lawmakers to ignore the potential job creation and tax revenue.”

The legislation, which is being heard today in the Nevada Assembly Judiciary Committee, would put the Silver State on the leading edge of this burgeoning industry. With the state’s history as a preeminent brick and mortar gaming regulator, Nevada is poised to be the premier regulator of Internet poker in the United States. The Nevada Gaming Control Board has already entered into a memorandum of understanding with a leading European regulator so they can hit the ground running when this legislation becomes law.

“The PPA still remains fully committed to federal legislation and we wholeheartedly believe that it should be the U.S. Congress who takes the lead. Just last week, bipartisan internet gaming regulation legislation (H.R. 1174) was introduced in the U.S. House of Representatives. We support that bill. Further, the poker community is lucky to have Senate Majority Leader Harry Reid (D-NV) as an ally for regulated Internet poker and we look forward to continuing to work with him on a federal solution this year,” said Pappas. “Even still, we recognize the prerogative of states to engage and seek their own solutions. We have raised serious concerns with other state-based efforts, but feel confident that Nevada is on the right track with its proposal and that it could serve as model for future state action,” Pappas concluded.

This internet-poker specific bill is both uniquely controversial among all of the proposed intrastate iGambling bills.  Not only does it explicitly state that the NGC may not discriminate against the likes of Poker Stars and Full Tilt, which have operated gambling sites unlicensed with US players, but the legislation defines a model by which internet poker websites *outside* of Nevada could pay to connect player pools with new Nevada player pools through B2B state-regulated “compacts.”

That’s right.  If passed as is, players on new Nevada iGambling sites could play with people that live in places outside the state of Nevada “where interactive gaming is not prohibited” – so long as a regulated deal exists between the state and external websites.

One has to wonder – if this NV bill is made into law before the newly re-introduced federal internet gambling #campbill, what will the landscape of the future internet gambling market in the United States look like?

Watch it -> Live feed for AB258 in Carson City 11AM PST here ->  Assembly Judiciary @ NV Legislature webcast

From the press release:

WASHINGTON – The Internet Gambling Regulation, Consumer Protection, and Enforcement Act was introduced in the House today by Congressman John Campbell (R-CA) with Congressman Barney Frank (D-MA) as a leading sponsor. Congressmen Ed Perlmutter (D-CO) and Peter King (R-NY) are also leading co-sponsors.   The bill is identical to H.R. 2267 that was passed out of the House Financial Services Committee on July 28, 2010 with bi-partisan support.  The bill would establish a federal regulatory and enforcement framework under which Internet gambling operators could obtain licenses authorizing them to accept bets and wagers from individuals in the United States. The legislation comes in response to the enactment of Unlawful Internet Gambling Enforcement Act (UIGEA), which restricted the use of the payments system for Americans who gamble online.

As a recap, HR2267 passed through the Financial Service Committee last July.  It never took further steps in Congress last year, despite a significant sweat.  Harry Reid floated a draft of an internet gambling bill in December, known lovingly as #reidbill in Twitter, which also never made further official progress on Capitol Hill.  HR2267 contained no mention of the now dreaded “blackout” period that was the most infamous part of the #reidbill draft.

You can read the full statement by PPA, giving Campbell/Frank a virtual pat on the back-> here.

No, it’s not part of the plot line to a poker-politico version of “Almost Famous”.

Unlike the lobbyist-types communing in various state capitals for the purposes of *passing* online gaming legislation, this party is roadtripping to *repeal* the online gambling ban in Washington State.

Read about it via the following presser from PPA (but lol at the word “draconian”):

Poker Players Alliance Members Meet with Washington Lawmakers
Hope to Gain Support for Overturning State Ban on Online Poker

Olympia, WA (March 17, 2011) – Members of the Poker Players Alliance (PPA) from across the state of Washington are spending the day in Olympia today to ask their state lawmakers to overturn the draconian state law that makes Washingtonians felons for enjoying a hand of poker on their home computers. The PPA, the leading poker grassroots advocacy group with more than one million members nationwide and more than 20,000 in Washington State, has been leading the efforts in the state to protect players from potential criminalization and provide them with a safe, regulated, national environment in which to play online poker.

“Washington is the only state that makes it not only a crime, but a felony on par with child pornography, for its own citizens to play poker at their home computer. Surely, lawmakers in the state can recognize that penalizing their constituents for opting to enjoy a hand of poker on the computer versus at the casino down the street is not only illogical but ineffective,” said John Pappas, executive director of the PPA. “Our goal with this lobby day is to raise awareness of the incongruity of this law and identify alternatives for legislators to support that will remove this criminalization while providing a safe and regulated online poker market.”

Joining more than 20 Washingtonians in Olympia are three renowned professional poker players – Andy Bloch, Linda Johnson and Jan Fisher. The group of players will meet with at least 45 state legislators to discuss the impact of the state ban and how overturning the ban and supporting federal and perhaps even state regulation of online poker would result in consumer protections for players and millions of dollars in much needed state revenue.

The state law, passed in 2006 and recently upheld by the State Supreme Court, makes it a class “C” felony for an individual to play poker online from their home computer punishable by a $10,000 fine and/or five years in prison. A 2010 poll of Washington State voters found that an overwhelming 80 percent of them disagree with this law, and over half believe online poker should be licensed, regulated and taxed.

“We have the support of the public for overturning this ban. We have the support of the players. We hope that after today, we will have the support of state lawmakers as well and can begin the process of removing the criminalization of the individual players and establishing a safe, regulated online poker market in Washington State,” continued Pappas.

1) SB103 allows for Nevada Gaming Commission to establish licensing requirements/fees for “interactive gaming service providers” to act on behalf of licenses Nevada “establishments.”

2) SB218 authorizes the Nevada Gaming Control Board to setup and regulation of “hosting centers” as well as the authorization of “service providers” as amendments to NRS 463.750, with the assistance and advisement of the Nevada Gaming Commission

SB103 text at-> SB103 bill contents
SB218 text at-> SB218 bill contents

Live feed for the NV Senate Judiciary committee hearing for SB103/SB218 on 3/11/2011 in Carson City will be available here-> View (low speed) || View (high speed).

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These two Nevada bills are *different bills* than the one read in the Assembly yesterday.  That bill was named AB258 that is specific to iPoker, allows for potential interstate gambling, and opened to doors for prior bad-actors-of-sorts.  This bill was referred, but not scheduled for hearing in the Senate Judiciary.

AB258 text at-> AB258 bill contents

Press links for AB258
Gambling Compliance article (by @CKrafcik) -> “Nevada Rejoins Internet Poker Race”
Las Vegas Sun article (by @RalstonFlash) -> ‘As feds grapple with issue, Legislature will consider legalizing Internet gaming”
ABC News article (by Michelle Rindels, AP, @oskargarcia contributes) ->‘Nev. Bill Would Set Regulations for Internet Poker’

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Thanks to Chris Krafcik (twitter: @CKrafcik) and Susan Rhodes (twitter: @sdrhodes) for assistance in research and analysis.

Follow me @scarlet_lv today for live-tweet of the feed from the Nevada State Legislature.

The document can be found here-> <<image of Christie veto letter in PDF>>

It remains a bit unclear if this means the bill is going no further in the process to becoming law, or if it has been conditionally disapproved by Christie, and what precisely this means in terms of next steps for the effort to regulate gambling at the state level.

Checking the NJ Legislature of the website (searching for S490), the bill is currently listed with the last status update made today “3/3/2011  Conditional Veto, Received in the Senate.”

From the NJ Legislature online glossary:

CONDITIONAL VETO A veto in which the Governor objects to parts of a bill and proposes amendments that would make it acceptable. If the Legislature re-enacts the bill with the recommended amendments, it is presented again to the Governor for signature.

[Update per @GamingCounsel -> the NJ Legislature website has now changed the status of the bill in the past hour or two to the state of "Absolute Veto" from "Conditional Veto"]

In his veto letter to the Senate, Christie reveals what his objections are to this bill.  He cites his primary concern that this legislation as-it-stands does not prevent gambling transactions originating outside of the confines of Atlantic City in “commercial establishments”, as in intrastate cyber-cafes of sorts.  He states that if NJ residents wish to expand gambling beyond AC limits, they would need to reach this point by public “referendum” (a.k.a. vote).

Based on Christie’s statement alone, it sounds as if the governor is not asking for amendments, but rather stating his opinion that the issue of intrastate gambling in his state is one best left for public vote because of the “territorial limits” that exist.  If/what next steps the legislature in New Jersey chooses to take in response, as well as what Christie truly might be willing to sign into law in the future remains to be seen.

Seems to me that today’s veto, conditional or not, might alternately be thought of as a next step in the *pursuit* of intrastate iGambling legislation in New Jersey, just as many steps have also been taken in *pursuit* of federal online gambling legislation with HR2267 and the draft of #reidbill.

Press of Atlantic City reported here:

Gov. Chris Christie said at 11:30 a.m. today that he has not yet decided whether to sign or veto a bill creating an intrastate online gambling system.

Christie has just hours to decide whether to allow the system, which would be a first nationwide but which has faced questions about its legality within state and federal law.

Christie said he plans to decide the issue later today.

If he does not act by the end of the day, the bill becomes law.

The official live-feed site for Governor Christie went into “password protected” mode at about 11AM EDT, leaving those of us geeky enough to have gotten to the presser early to remain in the open chat room staring at a blank feed, and everyone else who wanted to watch *out*.

PPA Chairman Alfonse D’Amato appeared on Fox Business at 12:15PM EDT to discuss the governor’s upcoming decision. When asked what he thought was on Christie’s mind were this afternoon. D’Amato said:

“I think the governor would like to pass it [S490], but there may be a constitutional prohibition.  He’s studying that right now.  And it may have to first go through the people for legislative approval.”

Whatever Christie might be thinking or “studying” today, he has only until midnight tonight to veto the bill before it is made law.