States on different paths to Internet gaming

May 20, 2013 8:10 PM

Nevada and New Jersey, the country’s two leading states in moving toward online gaming, appear to be taking different routes to accomplish their goals.

Ultimate Poker, a company that is majority owned by Station Casinos Inc., is already providing online poker action in Nevada on an intrastate basis. New Jersey, meanwhile, is moving toward online gambling that will provide an opportunity to wager on all types of casino games.

On Friday, the Division of Gaming Enforcement issued proposed regulations to govern online wagering. Emphasized were rules that require companies to verify that players are participating from within the New Jersey boundaries.

A tax of 15% will be paid on operators’ winnings. As for participants, they will be limited to a lifetime deposit total of $2,500 at which time they must acknowledge they have reached the threshold and have the ability to set daily limits. This was one of the recommendations made by the National Council on Problem Gambling, the division said.

Also included in the rules was a provision that would allow the state to make agreements with other states or countries where Internet gambling is legal.

Final adoption of the regulations will follow a review process. A 45-day warning will be given prior to the start of online gambling within the state, the regulators indicated.

In Nevada, Gov. Brian Sandoval, a former chairman of the Nevada Gaming Commission, is reportedly seeking Internet poker partners in other states, having adopted the position that this state has the expertise while other states could offer more potential players.

A personal relationship between Sandoval and Texas Gov. Rick Perry has caused speculation that the Nevada governor may be seeking Texas as a potential partner in Internet poker. In order for that to happen, Texas lawmakers would have to pass legislation authorizing Internet poker.

Such legislation has a limited time frame. Reports indicate the bill would have to be approved by May 27.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

 GamingToday on Facebook      and         GamingToday on Twitter