Not super-pokery, but poker players definitely like to bet on sports … and the gamble-wonky might find it interesting what the following data reveals about the economy … let alone the role of sports betting in American culture and the spread.
The Nevada Gaming Control Board released the state’s take on the Super Bowl last week from its 183 sports books. $87.5 million. Not a totally shocking number — bigger than the last two years but nowhere near the glory days of 2006 … and the state lost money in ’08. But what was surprising to me is how much Nevada won — a mere $724k … less than 1 percent of money wagered, and the second smallest amount won by the state in the past decade. I mean she-ot … that’s less than a single Phil Ivey prop bet!
Since it seems the Feds aren’t gonna allow the world to come to the WSOP (via the internet) … the WSOP is now taking steps elsewhere across the world. Caesars Interactive Entertainment, formerly HIE but still parent company to the WSOP, announced Italian partnerships that will allow the Montreal-based company (with operational headquarters in Las Vegas) to establish its presence live and online in the regulated Italian market — and ultimately make it easier for these poker paisanos to get to Vegas in the summer.
“The new name can open new opportunities for the company in the future.”
Hmm, a name leading to new opportunities? Harrah’s has been talking about the name change for more than a year — pretty much ever since they opened up their non-poker online gambling opportunities at CaesarsCasino and CaesarsBingo dots-com — but have never gone through with it, at least in any marketable or taxable way. But sure enough, a form filed with the SEC yesterday confirms that Harrah’s Entertainment Incorporated would now, finally and officially, like to be called Caesars Entertainment Corporation. At least in the eyes of Uncle Sam.
And while the new monicker may lend itself to illustrations of Loveman in a toga eating grapes and future mockery should Harrah’s-cum-Caesars ever wanna deny its imperialistic nature … some of us can’t help but wonder if there isn’t even more to it than that. Why now for such a bold move? Surely it will cost a few million bucks to get everyone new business cards and change the labels on bottled water … so what relation, if any, might it have to seemingly accelerated online gambling pursuits and/or, most recently, a (suddenly) delayed IPO — both specifically addressed in the same document as the name change.
I know that these past few days everyone’s been talking about Jonathan Duhamel’s triumph in the November Nine. Sadly, I wasn’t in Las Vegas for it and it has been covered much better than I ever could elsewhere. In lieu of that, here are my thoughts on some of the interesting legal developments in gaming over the past week:
American Midterms (Part I) - Top story last week & top 2 stories this week. As expected, the Democrats lost control of the House of Representatives, Representative Boehner will be the next Speaker, and Senator Reid kept his seat and his job as Senate Majority Leader. (Aside: great article here on how Reid pulled it off.) What does it all mean? It’s too soon to say. I continue to think that the general trend towards legalization in the US will continue and that, if nothing passes during the lame duck session of Congress, there may be more going on in intra-state gaming in the coming year than in Congress. However, it may be that a new bill (sponsored by Senator Reid) could be passed during the lame duck and legalize poker. Keep watching. [Examiner; Poker News Daily]
Tzvetkoff Squirrel Funds - This is a story that’s been followed by those in online poker for months. Daniel Tzvetkoff created a payment processor in Australia called Intabill. He is alleged to have defrauded several Internet poker operators and was arrested in Las Vegas earlier this year on money laundering charges, among others. Most seem to think that he’s co-operating with federal authorities. Now come allegations that funds from the payment processing business were squirreled away in a payday lending company in Las Vegas called Hugo Services. Apparently some $50 million are at stake. If true and if the federal government hasn’t already seized it, Daniel’s and Intabill’s creditors can be expected to make a move against it to try to recoup some of their losses. [Courier and Mail]
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Increase in Polish Internet Gambling - In case any more evidence were needed that banning Internet gambling doesn’t reduce its incidence, apparently Poles will have gambled away 20% more by the end of this year than they did in the year in which Internet gambling and advertising was outlawed in Poland. [Warsaw Business Journal]
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Zynga on the Go - These guys have been in the press a lot lately, and especially in the past week. First came news that Zynga Game Network’s estimated worth exceeded video gaming giant Electronic Arts’s market value. (Apparently, Zynga is worth $5.5 billion.) Now Zynga is being touted as a player in mobile gaming. It already has a Texas Hold’em game available on Facebook that supports 6 million users daily. More proof that the next wave of gaming is already underway and will involve social media and mobile gaming. Watch these guys and other players in this developing market. [Online-Casinos.com]
I’ve returned from Spain after attempting to live-tweet a very informative conference with some great minds on the forefront of gaming law. Here’s a look at some important legal developments from @GamingCounsel over the past week …
American Midterm Shuffles - Today, everyone is thinking about the US elections. Are the pundits right? Are the Democrats headed for heavy losses? Will Harry Reid prevail in Nevada? What does it all mean for Internet gaming, specifically for poker? Whatever happens today, the trend towards legalizing and regulating Internet gaming will continue in the United States. The focus may move to the state level - although some are saying that a new Reid bill could be passed before the end of the lame duck Congressional session on December 31st - and, if Senator Reid loses (which is unlikely), things may be slowed down. However, the push for poker by many interested groups is too big for one person or one election to derail entirely. Some see today as crucial to the industry (see: Offshore Gaming Association); taking the long view, however, I’m a bit more sanguine.
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Kentucky vs. Microgaming - Things always seem to be developing in the Kentucky domain name seizure matter. Several weeks ago, the Supreme Court of Kentucky denied the writs of IMEGA and the IGC, sending the questions of standing and jurisdiction back to the Franklin Circuit Court (that was only a waste of 6 months); recently the Commonwealth added Microgaming to its list of defendants in the separate but related suit against Pocket Kings (FullTilt Poker) and PartyGaming for damages. Kentucky is seeking to recover triple the amount of losses of those located within Kentucky against these three “and unknown defendants. [EGR Magazine]
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New Bank Seizures - Circumstances continue to challenge those servicing the US-facing Internet poker market. In Seattle, federal prosecutors have sought to cause the funds of Secure Money Inc. (a payment processor based in Canada) to be turned over to the US government. [Seattle Post-Intelligencer]
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Boyd Gaming Fundraisers - On October 26th, Boyd Gaming Corporation announced that it’s seeking to raise $500M through 8 year senior notes in a private placement. The bonds will be guaranteed by certain Boyd subsidiaries. Boyd will use the funds to pay off existing debt. This continues the recent trend of gaming companies reaching out to the broader markets (some through IPOs - see Betfair) to raise funds. [Boyd Gaming]
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IMGL Conference Summary - The International Masters of Gaming Law had their fall conference in Madrid last week. It was a great series of sessions and contained lots of stories and gossip (lawyers are as bad as judges and schoolgirls for thriving on gossip). Snippets on the US: rumours about Harry Reid working on his own poker regulation/tax bill; predictions about New Jersey and Florida being the most likely to pass intra-state gaming bills among the states; and, forecasting that current US-facing operators will still have a significant role to play post-US regulation. [Gaming Law Masters]
Barrister Stuart Hoegner is an expert but not quite a “master” in international gaming law whom you can follow regularly @GamingCounsel.
Here’s @GamingCounsel‘s look at the important legal developments in gaming over the past ten days or so:
Crespo v. Online Poker - Interesting complaint filed in the US District Court for the Northern District of Illinois, Eastern Division filed on October 12th. In a nutshell: A resident of Florida named Scott Crespo, who may or may not play poker online (there’s no indication from the complaint that he does or not), is suing residents of Illinois under an Illinois statute for money they purportedly won from other online poker players who may or may not be residents of Illinois. Oh, and Crespo apparently didn’t lose any money. He wants triple the amount of the unclaimed “losses” of others accruing to the defendants. Illinois was chosen because it’s one of a handful of states that have third party recovery statutes. As a gaming attorney I know in the US put it: We have way too many lawyers with nothing productive to do. [US District Court]
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Betfair IPO Numbers – The Betfair IPO seemed to hit the top end of what analysts were predicting as the company’s market capitalization. Betfair was valued at £1.4 billion on flotation. Fully £200 million was raised on the IPO. [Herald Scotland]
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Harrah’s IPO Imminent - More news from the public markets: Harrah’s is heading back to the public marketplace with an estimated $575 million offering. The money is likely to be used for new casino projects in Las Vegas and Ohio, not to pay down debt. We’ll have to wait and see how this offering fares, but there are definitely challenges ahead. [Wall Street Journal]
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Canadian I-Gaming Split - While certain provinces are keen to enter the interactive gaming market, others are throwing cold water on the idea. Ontario and Quebec have announced that they’re coming out with online offerings; British Columbia already offers an online experience at www.playnow.com. However, Nova Scotia, Newfoundland, and Prince Edward Island recently announced that they’re not comfortable with participating in Internet gambling at this point. These latter three provinces are small - PEI is the smallest province in Canada, both geographically and in terms of population - but, interestingly, they’re part of the Atlantic Lotteries Corporation, which is working with BC and Quebec on sharing liquidity on a common Internet poker platform. [Globe and Mail; CBC]
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IMGL Conference in Madrid - The International Masters of Gaming Law is the pre-eminent organization for gaming attorneys and other gaming experts. Their Fall conference is on from October 24th-26th in Madrid and, as usual, it’s an interesting lineup and series of sessions. I’ll be tweeting on different panels and speakers throughout the conference; check out my tweet stream if you’re interested. [Gaming Law Masters]
Hello good people of Pokerati. Here’s what I hope to make a weekly digest of what I think are the most interesting and/or relevant stories (not necessarily the same thing) happening online and around the world:
PokerStars turns off Washington players - This is the first US state to be turned off by PokerStars. Major Stars competitors have not responded in-kind. This was not prompted by any change in state law in Washington (the ostensible reason was the result in the Rousso v. Washington judgment handed down on September 23rd). This may signal that Stars is not going to be as aggressive as others in maintaining a presence in all jurisdictions in the US. [Casino City Times]
HR 2267 - People continue to try to read the tea leaves to determine what’s going to happen with the Internet Gambling Regulation, Consumer Protection and Enforcement Act. Every utterance from Reps. Frank or McDermott or from Senator Reid sends the online forums and poker press into overdrive. The House is now adjourned until after the November elections. If HR 2267 is to pass, it must be done during the lame-duck session starting after the mid-terms and ending before the start of the 112th Congress in early January. I continue to believe that it’s more likely than not that the current version (as amended) will not pass before the start of the next session, but remember that a lot can happen in a few days. [GovTrack.us]
Betfair IPO - This is one of the biggest public offerings in gaming in some time, so it’s no surprise that it’s getting quite a lot of attention. Betfair is apparently not raising new money on the float; shareholders are selling off approximately 10% of their holdings before over-allotment. Initial media reports had suggested a valuation of as high as £1.5B, but this appears to have been discounted. [Wall Street Journal]
Penn National coming to Vegas - Penn National Gaming purchased the outstanding debt of the M Resort in Las Vegas for $230.5M. This is seen as Penn’s way of eventually owning the asset, giving it its first Las Vegas property. The M was built at a cost of $1B, so most appear to be congratulating Penn for effectively purchasing a nice asset at a fraction of cost. [LVRJ]
PokerStars Licensure - Stars continues to build up gaming licences in various jurisdictions; it now has operating licences in France, Italy, and Estonia, as well as its ‘main’ international licence from the Isle of Man. This may be a sign of the kind of regulatory fragmentation that owners will face in future (especially in Europe) as different countries open up their markets to licensure and operations. [Gaming Zion]
If this is true, it would mark the second WSOP-Circuit addition not at a Harrah’s property. That’s the unofficial word from a Harrah’s suit, with firm-sounding dates attached. According to venerable Circuit TD Jimmy Sommerfeld on 2+2 …
I think that … a Tournament at Palm Beach Kennel Club on February 17 – March 1 would be a great Idea. Maybe its not a rumor?!! I would gamble and book a room.
Ah yes, it all makes so much sense now, doesn’t it? (That is, of course, assuming Sommerfeld doesn’t get canned before WSOP-Choctaw, in January 2011, for running his yap ahead of any official press release.
Not only would a WSOP-Florida series further support America’s favorite citrus-bearing peninsula as the juiciest destination in poker since France, but also, it would confirm Harrah’s willingness to take unprecedented steps in an effort to keep up with the new-and-improved WPT/Party/Bwin.
The above dates, if true, would run it right up against the WPT-LAPC, btw.
I thought so, too … and maybe that’s why few seem to be recognizing the historic happenings right here, right now, with sports betting in Nevada. Check out the new TV commercials — seen on the local ABC affiliate before the UT-Tech game — for the first ever legal wagering app in the United States, moral opposition be damned:
We knew the release of “Leroy’s App” might be kinda a big deal … and the CEO of Leroy’s parent company, American Wagering, Inc., spells out pretty clearly their intent to have their finger on every “online” sports bet in the country with “interstate sports betting networks, phone betting, and real-time handheld devices”:
The WPT-Borgata Poker Open is underway … big action of the season for East Coast grinders and top pros willing to travel to New Jersey. New Jersey happens to be one of the most fascinating states on the online gambling legal fronts for many reasons — sports gambling, poker, and casino games all included — as their state lawmakers attack severe budget deficits at a time when Atlantic City took some of the biggest recessionary gambling hits.
But arguably the biggest and most immediate threats they’re facing are from neighboring states that have expanded gambling — with new tables, poker and otherwise, rapidly opening. Though it’s just a single anecdote and hardly statistical evidence of anything, I got this text message from a Pokerati player about new games in his home state of Delaware:
I’m back in DE. Playing @ DE Park right now. Casinos 15 mins from my house. 20 tables, separate tourney room, pretty nice. haven’t gone to AC since I’ve been here.
Yikes, if not indicative of likely continued economic woes for New Jersey, it seems to at least suggest something about the redistribution of gambling wealth currently going on in the Northeast corner of the United States.
I think we all understand the nature of the WSOP’s push for their play-money online poker game on Facebook, which is being heavily advertised on commercials during ESPNs broadcast of the WSOP main event. People seeking more information, however, could be mistakenly led to the Facebook page promoting action with the WPT, arguably one of their biggest competitors for this market.
Check out the potentially confusing appropriation of the WSOP logo in an ad currently being served up to hundreds of thousands of fans of “poker” on Facebook:
Careless mistake by a WPT social media intern … or conscious effort on days the WSOP is airing on ESPN such that they get the “likes” before Big Casino corporate lawyers make someone say “oops, sorry” and change the ad to something that doesn’t use tactics usually reserved for fly-by-night operations looking to make a quick buck?
UPDATE: On 9/21, the WPT issued an official statement on the matter:
“We would like to confirm that the Facebook ad mentioned in your September 17, 2010 post was indeed a mistake on the part of a 3rd party advertising agency used by our “WPT Texas Hold’em on Facebook” licensee. The ad was placed by the advertising agency without the knowledge of WPT or our Facebook game licensee.
Please be assured that we acted immediately to rectify the situation and that the advertising agency has pulled the unapproved ad. Thank you for bringing this matter to our attention.â€
Much more to say on the matter … but just to set the record straight, after further research I am now fairly confident that the rumor propagated across the internet about a Harrah’s sale of the Rio being “complete” was not accurate.
Pretty sure something was close to done and may or may not have fallen apart, and that Harrah’s is still looking to unload the home of the WSOP on someone … with any serious offers of $300 million or more getting a real look. But I don’t really know even that. Meanwhile, any poker media who ran with the story needs to consider their willingness to rely on such unsavory sources, and should probably go sit in a corner and think about what they’ve done.
[Gaming] executives said Reid, D-Nev., told them he would support the legalization of online poker in the United States but drew the line there — he would not support any other form of online gaming — during an Aug. 16 meeting at the Atlantis Casino Resort Spa [in Reno].
This falls in line with what Rep. Shelley Berkley (D-NV) told the same paper earlier this month — that Reid’s position against online gambling had “softened dramatically” — after she and Nevada’s two other representatives made a serious push on Reid to support Barney Frank’s HR 2267. Berkley and Rep. Dina Titus (D-NV) are Frank bill co-sponsors, and Rep. Dean Heller (R-NV) “cautiously supports” it.
The problem Reid’s supposedly running into now are non-Harrah’s B/M casinos in northern Nevada asserting online gambling is a threat to business and Nevada tourism … thereby costing the state jobs. And as outdated and arguably inaccurate as that argument is — we’ve heard it before, from the same Vegas ops and Indian tribes that now support online gambling — anything that opponents can spin against Reid as anti-jobs probably isn’t something the senator would want to risk heading into November, as he faces a statewide election in the state with the highest unemployment in the nation. At a minimum, wading into such waters would require a lot more money for internet ads to smear Sharron Angle out of contention.
One of the biggest non-major tournament series of the year is underway in Thackerville, Oklahoma, promising $3 million in guarantees. “The River” — hosted by Greg Raymer and the historically storied WinStar tribe — is 9 events spread across two weeks, Aug 23-Sep 6. They’ve got some sort of overall points leader prize for a Porsche Cayenne overlay, too, worth $70k.
Today’s event, Event #3, happens to be $440 NLH/PLO with $40k Guaranteed. Wonder if they’re aware that Lev Serzhenko was recently crowned the World Champion of $230 NLH/PLO with a Single $200 Rebuy.
Since the main here will be more or less the regional championship in my old stomping grounds — in fact, thinking we might-should call it the North-North Texas Championship in future posts — I find myself wanting to follow these events uniquely as a fan. I’ve got tons of friends playing and would expect to see plenty of past opponents from the Dallas underground, presumably some Batfaces, lots of ole Lodge amateurs, and, I hope, a few Team Pokerati players. Also curious to see what type of pros show up.
But semi-live coverage of the River is hard to come by. Lots of future thoughts on why that is … but in the meantime, here’s where I’ll be checking for River buzz, for starters …
And because Pokerati can’t be there this year (but kinda-sorta would like to be) here are some possible news stories I see shaking out, or at least stuff worth looking into for anyone who might wanna ask some questions or snap pics with their iPhone and send an email or an @reply on Twitter:
Part of the buzz underlying this week’s Detox Poker activity has been the fate of the Hard Rock Poker Lounge. To be sure, the luxed-out $12 million 18+table poker room that opened in 2008 — nearly two years ago to the day and possibly two-and-a-half years too late — will be closing in about a week.
According to casino personnel, almost immediately upon the conclusion of Detox, Hard Rock cash games will be moving to a more efficient 6-8 table spot connected to the main casino area — something with a smaller electric bill, more in line with plans for expanded sports-book offerings, and in view of the round casino’s famously raucous “center bar”.
The decision to downsize was final before Detox even started — and gotta say … kudos to HR Poker Director Troy Evans for presumably putting his job on the line to keep Detox. New suits above him were supposedly less enthusiastic about keeping the Matt “Savage Rocks!” late-summer mini-series on the calendar. Don’t have any hard dates for transition, but all potentially affected say it will be quick. Here’s a glimpse of what the new space next to Wasted Space will look like:
(Wasted Space is also closing, to make room for the new-and-improved sportsbook.)
The new poker room — about a third the square footage and in an arguably better location — will replace the former “Hell’s Belles” blackjack pit (hot dealers, go-go dancers, $100 minimum bets), which prior to that had been the “Peacock Lounge” (a pimped-out tribute to Jimi Hendrix). It will supposedly still have its own bar (with video poker, of course), a semi-private nook for high-stakes or VIP games, and a separate poker-player’s bathroom. Management says they’ll be bringing over the same tables and chairs, but are unsure whether or not they will keep the name “poker lounge”.
Decisions were also still pending (as of last week) about whether or not the Detox Series would be back and held in a Hard Rock ballroom. The current poker space will apparently become a restaurant.
