GPWA Times Magazine - Issue 27 - February 2014

first time since 2008, saying California will pass an online poker bill in the next two years doesn’t sound like a pipe dream. Florida This is another big target for the online gaming industry. Florida has a population of more than 19 million and a sizable gam- ing industry. From Native American casi- nos, to poker, horse racing, dog racing and jai alai, there’s a lot of betting happening in Florida. But the political environment in Florida isn’t necessarily conducive to passing online gaming legislation. In 2012, the state legislature failed to pass a bill that would have brought resort-casinos to South Florida. The Seminoles, who operate Indian casi- nos in Florida, used their sizable politi- cal muscle to make sure the casino bill didn’t pass. That, combined with a gen- eral skepticism of the plan, doomed the bill’s chances. If the legislative will to bring land-based gaming to South Florida – and potential- ly break its compact with the Seminoles – isn’t there, then it’s hard to see on- line gaming becoming a reality in the Sunshine State. But parts of the of Seminoles’ compact with Florida expire in 2015, including the portion that allows them to offer blackjack. And the Seminoles have shown interest in entering the online gaming business. If the stars align correctly, there could be a limited window of opportunity in 2014 to bring online gaming to the Sunshine State as parts of the compact are renegotiated. Whether anyone can take advantage of it is another matter. Illinois Illinois is another populous state that the online gaming industry would love to break into. With nearly 13 million people and a sizable commercial casino industry, Illinois has most of the ingredients need- ed to pass online gaming legislation. It has casinos that want online poker. Its Senate President, John Cullerton, is al- ready an advocate for online gaming. In fact, he tried to pass online gaming legisla- tion in 2012 and 2013. But it was dropped in each instance because of skepticism/ opposition from the governor’s office and because he needed to build more support in the legislature. Cullerton can handle building more sup- port for online gaming in the legislature. But Gov. Pat Quinn needs to be convinced that Illinois should adopt online gaming. If online gaming advocates can clear that hurdle, Illinois has a good chance of get- ting online gaming in the near future. Massachusetts The Bay State has expressed interest in adopting online gaming legislation. But state officials have made it clear that un- til land-based gaming is up and running within the state, online gaming will be on hold. The first gaming licenses for land- based casinos are expected to be awarded this year, so online gaming will likely have to wait until 2017 or 2018. Connecticut This is another state where most of the in- gredients are in place to adopt online gam- ing. Foxwoods and Mohegan Sun, the two Native American casinos in the state, both want to become online gaming operators. And unlike Governor Quinn in Illinois, the Connecticut governor is onboard. Gov. Dannel Malloy indicated in 2012 he would bewilling to signonline gaming legislation. The key in Connecticut is the state legisla- ture. Foxwoods and Mohegan Sun need to convince the state legislature to pass on- line gaming. In comparison to other states, this is a much shorter hill to climb. And it could result in Connecticut being among thefirst states to joinNewJersey,Delaware and Nevada in regulating online gaming. The federal outlook Can anything derail the state-by-state ex- pansion of online gaming? Yes. And his name is Sheldon Adelson. Adelson, the billionaire owner of the Las Vegas Sands Corporation, has vowed to spend as much money as needed to de- feat the expansion of online gaming in the U.S. And Adelson isn’t afraid of spending money on politics. Adelson spent close to $150 million on the 2012 elections, backing Republicans in an effort to unseat President Obama and remove the Democrats from power in the Senate. He ultimately failed, and he’s now focus- ing his money on eliminating the expan- sion of online gaming in the U.S. His efforts merit attention because they could work. The underpinning of the now burgeoning online gaming industry in the U.S., the DOJ’s revised opinion of the Wire Act, says it only applies to sports betting and permits intrastate online gaming. SeveralRepublicans–andsomeDemocrats – are not happy with that change. And they’re working hard to reverse it. The votes are not there to do so yet, espe- cially with Senate Majority Leader Harry Reid in charge. Reid is from Nevada and will work hard to protect the casino inter- ests of the state. But if the Democrats lose power in 2014, all bets are off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vin Narayanan Vin Narayanan is the editor-in-chief of the GPWA Times Magazine and has been covering the online gambling industry for the last eight years. He’s also considered an expert on the legal and regulatory landscape of online gaming in the U.S. “Can anything derail the state-by-state expansion of online gaming? Yes. And his name is Sheldon Adelson.” 24 Online gaming in the USA: Less dawdle, more doodle