James Guill

Over the last two days, iGaming industry leaders have gathered in Philadelphia, PA for the World Reglatory Briefing.  The purpose of the event was to discuss interstate iGaming compacts with a lot of focus being placed on online poker and iGaming between Nevada, New Jersey, and Delaware.

The first day of the conference centered on iGaming efforts in Nevada, New Jersey, and Delaware.  As expected, Nevada is highly optimistic based on Ultimate Poker’s success.  Casino City Vin shared the opinion of the Nevada Gaming Control Board.

Casino City Vin@casinocityvin

A.G. Burnett, Nevada Gaming Control Board, discussing his experience with @UltimatePoker. “It is a success.” #WrB13

Jennifer Webb was the first to reveal what proved to be the biggest news of the conference on Tuesday.

Jennifer Webb@WebbJennifer

Ed Sutor of @DoverDowns says #igaming will go live in Delaware in 9 days. #wrb13

With that announcement, Delaware confirmed that they will officially become the second state in the United States to offer legal iGaming, including online poker.  The launch will kick off on October 31st.

Marco Valero wrote a summary of discussions for onlinepokerreport.com and revealed a couple of problems that Nevada is having in terms of growth.  First, some players near the California border are having problems getting verified for play.  Also, some banks are not allowing players to deposit despite the fact that online poker is legal.

Day 2 of the conference centered a lot around interstate and international compacts and taxation.  New Jersey Division of Gaming Enforcement head David Rebuck revealed that the state would be exploring both intestate and international compacts.  John Brennan of NorthJersey.com tweeted more

John Brennan@BergenBrennan

NJDGE boss Rebuck says interstate and international i-gaming compacts could be on table as soon as 2014 #WrB13

Ewa Bakun then revealed who was the real driving force behind compact discussions at the conference.

Ewa Bakun@EwaBakun

Compact discussion is driven by NV where compacts are critical, RSchuetz #wrb13

In an article on NorthJersey.com, John Brennan talked a bit about interstate compacts saying that there was a lot of skepticism at the conference regarding interstate and international compacts.  There is uncertainty on how or even when they would begin the process.

In addition, there were some that voiced that they wished that states would try and pass laws that would be similar to one another.  Convenience and cost were the main reason this point was made, but the odds of this happening seem unlikely.

Taxation was another issue discussed at length during the conference.  Brad Polizzano led a panel discussing various tax models and how they would become a hindrance to interstate compacts.  Casino City Vin brought up one important point.

Casino City Vin@casinocityvin

.@taxdood says beware of the turnover tax. It doesn’t have a good track record in France. #WrB13

Brennan elaborated in his column.  States need to figure out how tax income is to be divided up between states and also how to handle different tax amounts.  The turnover tax in France was viewed as a tax that may drive online gaming out of existence.

Manitoba’s taxation model was viewed as a potential model to follow by US states.  Essentially, Manitoba piggybacks onto the system adopted by British Columbia and Manitoba gives them cut on taxes.

A couple of interesting announcements made during the conference came from Sue Schneider and Brad Polizzano.  Sue shared that a fourth state may roll out online gaming, at least in one form, soon.

Sue Schneider@SuziQSchneider

#WrB13 Georgia Lottery will roll out keno online soon.

Brad Polizzano revealed that Indian nations may have found their own solution to online poker, but it is one that may have some legal challenges.

Brad Polizzano@taxdood

A NoCal tribe plans to launch online bingo, making it available *off* reservation in certain states. #WrB13

Polizzano was referring to Great Luck LLC’s introduction of their new interactive i-Gaming software.  Essentially, it will be a VPN assisted play system that will allow outside users to login to a server and then a “proxy” will be setup to conduct online gaming.

This will supposedly meet the requirement of users having to gamble on Indian lands because the server will be run on Indian lands.  Odds are that this will not be viewed upon favorably and Indian nations will have trouble rolling this out.

So far, the main points to be taken away from this conference is that iGaming is growing, but will not be able to grow at the speed that players would hope.  There are many legal issues that must be resolved before interstate compacts will become a reality.  Keep in mind that the lottery was slow to evolve for many states, so players must be patient and allow legal events to take their time to unfold.