Greenberg Traurig LLP J. Daniel WalshUSA December 29 2011

U.S. Commercial Gaming. It means that states can now pass laws authorizing the licensure of intrastate Internet gambling. Pursuant to Nevada statutes, on December 23, 2011, Nevada’s Gaming Commission adopted regulations to license online poker websites for intrastate play, and will be positioned to regulate interstate play should federal law authorize the same. In addition, Internet gaming or poker bills are pending in at least four other states: New Jersey, California, Florida and Iowa. It also may be that states could compact with each other to allow interstate provision of such games based on a revenue-sharing formula, similar to the multi-state lottery offerings like Powerball.

State Lotteries. States can now sell lottery tickets on the Internet, and several states, including New York and Illinois, have laws in place that allow this. While there is little controversy surrounding the sale of time-drawing tickets on the Internet, sales of virtual instant scratch-off tickets are likely to be far more controversial, as such a ticket makes a computer function in a manner identical to a slot machine. The National Association of Convenience Stores and its state chapters are likely to be vehemently opposed to scratch-off tickets on the Internet. Companies that provide services to state lotteries are likely to push states toward expanding their lottery offerings on the Internet. There will likely be state-by-state battles between commercial and lottery gaming interests as to whether states should license commercial operators to go on the Internet, or provide the games themselves through their lotteries — such fights are occurring in Canada and Europe today.

Tribal Gaming. The implications for tribal gaming are less clear. Under the Indian Gaming Regulatory Act (IGRA, 25 U.S.C. § 2701 et seq), if a state provides or licenses gaming, the tribe is supposed to be allowed to provide similar games on its reservation land.⁴ Tribal governments will likely argue that if a state lottery offers Internet gaming within a state, or if the state licenses commercial operators to accept Internet wagers, then a tribal government located within that state should be able to license its gaming enterprise to accept Internet play from anywhere in that state. However, some states will likely argue that tribes should only be allowed to accept Internet play from the reservation, as wagers from off the reservation are not “Indian gaming” as defined by IGRA.

Offshore Internet gaming operators. Some will hail this as a victory for offshore Internet gaming operators who have accepted non-sports Internet bets from the U.S. To be sure, such operators relied on legal opinions that maintained that the Wire Act only applied to sports betting, and the DOJ action validates those opinions. However, DOJ maintains that nearly all states have laws that prohibit the acceptance of wagers, except when such wagers are accepted pursuant to a state license, and that those prohibitions also apply to individuals outside the state who accept wagers from individuals within the state. The so-called “Black Friday” indictments of April 15, 2011, of individuals associated with the three largest U.S.-facing Internet poker sites did not reference the Wire Act, but instead relied on IGBA.

 Federal Legislation. Several bills have been introduced in Congress to license and regulate Internet gaming. In the current Congress, H.R. 1174 (Campbell-Frank) would have the Treasury Department license and regulate all forms of Internet gaming except sports betting. H.R. 2266 (Barton) would have the Commerce Department approve state gaming commissions to issue licenses to accept Internet poker bets, such that any operator licensed by an approved state could take play from any state that hadn’t opted out of the federal system.5 Some (particularly lottery interests) argue that new DOJ position means no federal legislation is needed. Others (mainly Nevada commercial gaming interests) argue that it means federal legislation is needed now more than ever. We believe the new DOJ position will provide impetus for hearings on Capitol Hill, and for a renewed push from Senate Majority Leader Harry Reid of Nevada to pass federal legislation to license and regulate Internet poker on an interstate basis.

The original article appeared on Lexology and is much longer. To read the full article, visit: http://www.lexology.com/library/detail.aspx?g=7e3d929f-05ba-428e-b713-3e05ad4ef01c

Voisin  www.voisinlaw.com, by Dexter Flynn, Jersey, July 12 2011

The Jersey economy has finally moved into the 21st Century by accepting that the Island must be part of the e-gaming community.

According to a report from accountants KPMG, the online gaming industry contributed £7 million to Guernsey’s economy in 2007. This had increased to £50 million by 2009. Jersey, with all its attendant offshore facilities and expertise, should have been a world leader in this sector. With the introduction of the Gambling (Remote Disaster Recovery) (Amendment) (Jersey) Regulations 2011 (“Regulations”) on 17 March 2011, Jersey signalled its intention to make up for lost time.

The Jersey Minister for Economic Development, when proposing the Regulations, commented that their primary objective was to maintain Jersey’s reputation as a well-regulated jurisdiction while providing freedom for licensed e-gaming operators to locate their internet facilities in Jersey. The Minister commented that gambling businesses in Jersey would be required to adhere to three vital principles. The first is that gambling should be regulated in accordance with international standards. Secondly, that gambling should be fair to consumers of those services. Thirdly, that gambling should be conducted responsibly with the safeguards necessary to protect children and vulnerable people.

Under the Regulations, a Jersey person (defined to include a Jersey company and/or partnership) can apply for a licence to operate remote gambling services in Jersey. There will be two types of licence: (a) a general remote operator’s licence and; (b) a disaster recovery operator’s licence.

The general remote operator’s licence is a full licence granted to a Jersey person to undertake remote gambling in or from within Jersey. The disaster recovery operator’s licence will apply to those companies who had employed the old regulations to place their disaster recovery/backup systems in Jersey.

Jersey has its own gambling commission which was established pursuant to the Gambling Commission (Jersey) Law 2010. The Jersey Gambling Commission (“JGC”) will be responsible for the implementation of the codes of practice which will govern the Regulations. It will be the JGC that issues the licences. Having met members of the JGC, I have no doubt that we have an experienced and knowledgeable body who will ensure the swift and effective processing of applications.
The fee for a full gambling licence will be based on net profit tariffs. The initial licence fee (paid by all successful applicants) will be £35,000 regardless of size. There will be three bands of levy, the highest being £140,000 where profits equal or exceed £6.5 million.

Jersey is serious about this. Our politicians are currently engaged in talks with UK Government representatives to ensure that Jersey is placed on the list of safe gambling jurisdictions. There is even talk of a temporary licence being granted to Jersey while the UK reviews its own gaming laws.

It is clear that Jersey is finally open for e-gaming business. Voisin is at the forefront of this economic revolution, already dealing with one of the first applications for a licence.

WebMoney, a third party online payment system and comprehensive tool for online business activities, will provide you with the peace of mind for quick and secure payments.

To join WebMoney,  install a client interface on your PC, PDA or mobile device, register, accept it’s terms and conditions and you will be provided with your unique identification number (WMID) for use.

Depending on your technical capabilities, available resources or specific demands, WebMoney can provide you with various tools free of charge to assist in performing operations and transactions within the System.

Poker Affiliate World partners will soon be able to use WebMoney for transactions over USD$100.

October 21, 2009 (CAP Newswire) – Tomorrow, the Kentucky Supreme Court will hear the case against that state’s attempted seizure of 141 Internet gambling domain names that originally took place about a year ago. It was ruled earlier this year that the state could not proceed with the attempted seizure; tomorrow marks the beginning of the state’s appeal of that verdict.

The Interactive Media Entertainment and Gaming Association, or iMEGA, is the party that will be doing most of the arguing against the action. The plan is to outline the legal arguments why the state doesn’t have the jurisdiction to effectively take over the online gambling domain names, which include internationally based heavyweights such as PokerStars and Full Tilt Poker.

Each side has 15 minutes to state its side of the case, with the decision process scheduled to extend into next week, writes Dan Cypra at Poker News Daily.

iMEGA’s chairman, Joe Brennan, is confident of success. “Appellate Courts tend to take a conservative, narrow, statutory look,” he told Cypra. “The gambling device statute is one thing, but there is ample case law regarding due process. I am absolutely certain that you’re going to see the Governor’s attorneys get up and talk about what crooked operators we’re dealing with.”

To read Dan Cypra’s original article at Poker News Daily, click here. And remember to check back at the CAP News page for the latest developments on this story.

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