Requiring Internet gamblers to get a "poker license" could becomea key element of the campaign to legalize online poker in the UnitedStates.
Experts say a licensing system could address several issues inthe debate about online poker. A license would verify that a playeris old enough; uncover cheaters; provide accurate tax records; andgive gamblers the opportunity to limit how much they play or lose.
Online poker has been in a gray area for years; that's beenfurther muddied since April 15, when the U.S. Department of Justiceshut down the American operations of the three largest onlineproviders -- Full Tilt Poker, Poker Stars and Absolute Poker - oncharges of bank fraud, money laundering and illegal gambling. Theycontinued to operate overseas.
This week, the Alderney Gambling Control Commission, in theBritish Channel Islands, suspended Full Tilt's license and orderedit to stop operations. Also this week, District of Columbiaofficials talked about delaying a proposed Sept. 8 launch foroffering online poker, blackjack and other games within theDistrict. Last week, Rep. Joe Barton, R-Texas, introduced a bill toregulate online poker throughout the United States.
After more than a decade of debate -- and millions of Americansgambling online despite a government prohibition -- many experts seean opportunity to legalize online poker in the United States in twoyears or less.
"There's sort of a perfect storm out there," said RichardBronson, chairman of U.S. Digital Gaming, a California-based companythat sells complete systems for online gaming operators. "You've gotstates that are mostly broke. You've got a situation today in thiscountry where gaming revenues are no longer anathema to people."
John Pappas, executive director of the nonprofit Poker PlayersAlliance in Washington, said regulation at the federal or statelevel would provide players with the confidence that the games arehonest.
Frank Fahrenkopf Jr., president and CEO of the American GamingAssociation, which represents the casino industry, said onlinegaming has been "like the wild, wild West" because of the lack ofconsumer protection. Government regulation would provide thatprotection, he said.
All three said regulation and technology can conquer the biggestconcerns about online gaming: ensuring that operators are reputableand properly financed; that cheating by the house or players isprevented; that underage gamblers are kept out; that problemgambling is addressed; and that the government gets a cut in taxes.
The money spent in online gambling is staggering. Fahrenkopf saidit totals $5 billion to $10 billion a year from Americans alone.
Bronson predicted that states will enact online poker legislationbefore the federal government does. In that case, games would belimited to players within that state, he said. Players fromPennsylvania would not be allowed to log on to a California casino,and vice versa.
He foresees players having to have a "license" including personaldata such as birth date and Social Security number. Geolocationsoftware could guarantee that a player is in an area where onlinepoker is legal. Other software could analyze betting patterns thatwould reveal whether players were colluding, he said.
Pappas said the Players Alliance favors federal oversight ofonline poker, but he wouldn't be surprised if some states approve itbefore Congress does.
Poker player Ken Meier of Bloomfield said he supports the BartonBill, which was drafted with the help of the Players Alliance.
"Since poker is played against other players, it needs a criticalmass of people," Meier said. He said players want a large pool ofpotential opponents, including overseas competition.
Bronson predicted a tax rate of 20 percent to 25 percent on theprofits from online poker; for comparison, the Pennsylvania tax ontable games is 16 percent. Fahrenkopf said the tax rate will be"hotly debated," with taxes split between the states where a playeris located and where the provider is based.
Pappas said the alliance wants a rate that continues low online"rakes" -- the money the house takes from each pot. Poker Stars, forexample, has rakes of 1 percent to 5 percent of each pot, withmaximums of 4 cents to $5, depending on the game and stakes. InPennsylvania casinos, the standard rake is 10 percent, with a $5maximum.
Local player makes final table
Pittsburgh's Jeremiah Siegmund reached the final table this weekin a $1,000 No Limit Hold 'Em tournament at the World Series ofPoker in Las Vegas. He ended up being the first finalist knockedout, when his pocket nines lost to pocket queens. He won $33,813 inhis first WSOP cash.
Luke Staudenmaier of Imperial cashed for the fourth time at thisyear's World Series, winning $8,570 for finishing 58th in a $1,500No Limit Hold 'Em tournament. His WSOP winnings this year total$27,299. He's entered more than 20 events.
Money trail
In the week ended June 26, slot players lost $45.8 million atPennsylvania's 10 casinos, the Gaming Control Board reported. That'sup from $42.2 million in the comparable week last year, when ninecasinos were open. The state gets 55 percent of that figure, alsoknown as gross slot revenue.
Since the fiscal year started in July 2010, the statewide payoutrate on slot machines is 90.23 percent. For every $100 bet, themachines returned, on average, $90.23. Payout rates for WesternPennsylvania casinos:
90.04 percent: Rivers; weekly revenue was $5.18 million, up from$4.58 million in 2010.
90.11 percent: The Meadows; weekly revenue was $5.04 million, upfrom $5.01 million in 2010.
90.35 percent: Presque Isle in Erie; weekly revenue was $3.38million, up from $3.28 million in 2010.
Question of the week
What's the house edge for the In Between side bet at blackjack?
With In Between, you bet that the rank of the dealer's up cardwill be between your first two cards. If you are dealt a 6 and a 9,for example, you'd win if the dealer's upcard is 7 or 8. Payoutsvary, based on the spread between your cards. According towww.WizardOfOdds.com, the house edge is 3.4 percent in a six-deckgame, 3.04 percent in an eight-deck game.
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