Washington Pullout, Lame-duck 2267, Stars Int\’l Licensing, Betfair IPO, Penn National Vegas

GamingCounsel\’s Weekly Briefs

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:

  1. 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]
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  3. 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]
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  5. 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]
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  7. 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]
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  9. 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]

Gaming attorney and expert Stu Hoegner follows the poker and casino industries from a tax- and law-minded perspective @GamingCounsel.

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