The figures represent the third consecutive year of growth for the industry.
“In 2012, the Indian gaming industry saw its largest gross gaming revenues ever,” Stevens said.
“Regulation has played a key role in the growth of the Indian gaming industry. Over the last three years our regulatory review has provided much needed reform to meet the needs of the changing industry and provide flexibility and consistency for tribes and tribal regulators.” said Associate Commissioner Dan Little.
The GEObet Network is striving toward the introduction of regulatory guidelines for online Indian gaming too, which the comments of the NIGC regarding a changing industry needing flexibility, surely support.
Chief William Bills of the Winnemucca Indian Colony of Nevada, who recently launched the ShonEcasino.com online gaming brand on the GEObet Network Internationally, calls out for all Tribes of California to strengthen their Sovereignty and stand against the online gambling bill as now proposed by California Senator Rod Wright.
Chief William Bills states, “I believe Senator Wright is doing his best to bring forth the legalization of online gaming to the State of California however his approach is off the mark from where the vast majority of Tribes stand on this issue. I have been traveling across the nation meeting with Tribal leaders who are moving towards e-Commerce tied to their economic development strategy and Online Gambling plays significantly in those plans as a starting point to Cyberspace.”
The Indians of North America have used the airways for communications from tribe to tribe and have games of chance ingrained in their historical lives for thousands of years and certainly before European occupation of North America. We have inherent rights that Senator Wright should consider and not ignore in his pokerbill in California that will certainly diminish if not destroy our Sovereign rights. The Tribes really should not have to be required by the State of California for a gaming license because they have the right to self government and self determination and can essentially license themselves if they choose to do so. However we want to work with the States to create a framework of cooperation that is needed to use this industry to bring economic benefits to the Tribes. By supporting the Rod Wright bill in California as written, they will be surrendering their Tribal rights to self government. This will be a very slippery slope and one that will have the Tribes losing in online gambling while the major casino consortiums will control the majority of this business in America.
Chief William Bill believes that there is a possible negotiated position that can be discussed between State governments and Tribal leaders to bring forth a successful Tribal online gambling relationship with the States so that both parties will benefit however the need to support Tribal initiatives and build out Tribal businesses does not stop at the edge of the Indian lands it starts at the center of the Earth and reaches to the ends of the universe. These are Tribal territories and it is important that we defend our rights to practice our culture in the new millennium in a modern world.
If Senator Wright has his bill pass as is, then only the wealthiest of land based Casinos will be able to afford to have poker licenses in California and the 35 Million dollars up front is a barrier that is impossible to breach when entrepreneurs all over the world can launch online gaming sites and do business under international licenses for approximately 35K – 50K annual license fees that cover the world not including the USA. In addition European licensing bodies and governments are taking 0% up to 2% of Net gaming revenues for licensing and giving online gaming companies the opportunity for zero corporate tax in order to stimulate business development.
Why should Senator Wright and the State of California expect Tribes to pay up front $35MM price tag on poker? It is obvious that Senator Wright has not been shown or understands the mathematics or business plan of an online poker room. There is just not that money available in the gross revenues of a poker room. It amounts to a cash grab and it will be paid by entrepreneurial Tribal peoples who will be entering this business as startups.
Chief William Billssends a message to Senator Wright : “Senator I am not from your State however the Tribes span many States in America and our concerns are tied to blood lines that cross all borders not only State lines they include the border north to Canada and south to Mexico. I would welcome an opportunity to have an open discussion with you about your intent with this bill and understand how it will benefit the Tribes.”
Chief William Bills of the Winnemucca Indian Colony of Nevada, who recently launched the ShonEcasino.com online gaming brand on the GEObet Network Internationally, calls out for all Tribes of California to strengthen their Sovereignty and stand against the online gambling bill as now proposed by California Senator Rod Wright.
Chief William Bills states, “I believe Senator Wright is doing his best to bring forth the legalization of online gaming to the State of California however his approach is off the mark from where the vast majority of Tribes stand on this issue. I have been traveling across the nation meeting with Tribal leaders who are moving towards e-Commerce tied to their economic development strategy and Online Gambling plays significantly in those plans as a starting point to Cyberspace.”
Chief Bills further states, “the Indians of North America have used the airways for communications from tribe to tribe and have games of chance ingrained in their historical lives for thousands of years and certainly before European occupation of North America. We have inherent rights that Senator Wright should consider and not ignore in his poker bill in California that will certainly diminish if not destroy our Sovereign rights. The Tribes really should not have to be required by the State of California for a gaming license because they have the right to self government and self determination and can essentially license themselves if they choose to do so. However we want to work with the States to create a framework of cooperation that is needed to use this industry to bring economic benefits to the Tribes. By supporting the Rod Wright bill in California as written, they will be surrendering their Tribal rights to self government. This will be a very slippery slope and one that will have the Tribes losing in online gambling while the major casino consortiums will control the majority of this business in America.
Chief William Bill believes that there is a possible negotiated position that can be discussed between State governments and Tribal leaders to bring forth a successful Tribal online gambling relationship with the States so that both parties will benefit however the need to support Tribal initiatives and build out Tribal businesses does not stop at the edge of the Indian lands it starts at the center of the Earth and reaches to the ends of the universe. These are Tribal territories and it is important that we defend our rights to practice our culture in the new millennium in a modern world.
If Senator Wright has his bill pass as is, then only the wealthiest of land based Casinos will be able to afford to have poker licenses in California and the 35 Million dollars up front is a barrier that is impossible to breach when entrepreneurs all over the world can launch online gaming sites and do business under international licenses for approximately 35K – 50K annual license fees that cover the world not including the USA. In addition European licensing bodies and governments are taking 0% up to 2% of Net gaming revenues for licensing and giving online gaming companies the opportunity for zero corporate tax in order to stimulate business development.
Why should Senator Wright and the State of California expect Tribes to pay up front $35MM price tag on poker? It is obvious that Senator Wright has not been shown or understand the mathematics or business plan of an online poker room. There is just not that money available in the gross revenues of a poker room. It amounts to a cash grab and it will be paid by entrepreneurial Tribal peoples who will be entering this business as startups.
Chief William Bills’ sends a message to Senator Wright “Senator I am not from your State however the Tribes span many States in America and our concerns are tied to blood lines that cross all borders not only State lines they include the border north to Canada and south to Mexico. I would welcome an opportunity to have an open discussion with you about your intent with this bill and understand how it will benefit the Tribes.”
Online poker has only recently become legal in the State of Nevada and now two companies which are leaders in their respective fields are to join forces in order to launch the state’s second real money online poker web site. 888.com hasn’t carried out any online gambling operations in the United States since these were banned under the Unlawful internet Gambling Enforcement Act 2006 and so it should not have any difficulty obtaining the remaining approval from the Nevada Gaming Control Board. Caesars entertainment Corporation is extremely well known as a major land based casino and hotel operator. The real money internet poker venture to be launched by the partnership formed by these two companies will be the first step to placing them among the biggest online gambling
providers in the United States.
Only three states in America, New Jersey, Delaware and Nevada, have so far legalised online gambling and each has some sort of restrictions. In New Jersey only land based casinos that already exist can apply for a licence to operate an internet casino. Delaware only allows state owned casino and lottery operators to provide online gambling. Nevada only permits online poker and not all online casino games that are allowed in the other two states.
So far Nevada is the only state that has a real money online poker room that is open for business. At the end of April Ultimate Poker.com was launched and it recently held the first legal real money online poker tournament which was very successful. (See article: First Winner of Now Legal United States Online Poker Tournament). The second legal online poker site should be launched in Nevada by 888 Casino and Caesars Entertainment Corporation while the 2013 World Series of Poker Tournament is running. It is proposed that the new real money poker site would be launched early in July just before the WSOP Main Event takes place. This new online poker room will bring together Gibraltar based 888.com’s software and online gambling experience and the American Caesars Entertainment Corporation’s high profile which should guarantee the success of Nevada’s second real money poker site.
A new California online poker bill supported by some of the state’s major Indian tribes has surfaced in draft form. The proposed Internet Poker Consumer Protection Act of 2013 is accompanied by a cover letter signed by the chairpersons of eight prominent tribes, including the Pechanga Band of Luiseno Indians, who up to this point had not supported any of the previous online poker initiatives.
The bill is expressly poker-only, including a “strong definition of poker to prevent expansion of games” in order to minimize cannibalization of tribal land-based gaming operations. Eligible licensees would be limited to federally recognized tribes already operating licensed gaming facilities and state card rooms. There would be no limit on the number of licenses beyond the number of eligible licensees, but licensees would have to have owned their land-based gaming facility for five years preceding the bill’s enactment.
Licenses would be valid for 10 years with automatic 10-year renewals provided the operator has done nothing wrong over the initial decade. All operators would face the same “go live” date of Jan. 1, 2015, to ensure a fair start. There are no figures specified for license fees, taxes or annual regulatory fees, although a previously circulated memo indicated a 10% tax on gross gaming revenue.
NO, SERIOUSLY… KEEP AWAY
As written, the bill would “require the state to opt out of, and decline to opt into any federal framework for internet gambling.” What’s more, the bill states that if the feds were to authorize compacts between states and/or foreign jurisdictions, “this state shall not participate in any such agreement.” (That collective groan you just heard came from Nevada casino operators, gaming regulators and all US poker players not currently residing in California, the largest US state.)
As for subcontractors, there’s a prohibition on ‘bad actors’ who accepted bets from California residents not just post-Unlawful Internet Gambling Enforcement Act (UIGEA) but at any time prior to the state passing its own legislation, which pretty much eliminates most operators doing business today. That prohibition extends to brand names, software, databases, etc. There’s a similar ban on internet cafes and all unlicensed online operators would be subject to asset forfeiture. All subcontractors would have to locate their equipment on California soil.
The question remains as to how this bill will make its way into the legislature. When news of the bill first spread earlier this month, California gaming attorney Harsh P. Parikh (@CAGamingLawyer) noted that Feb. 22 was California’s cutoff date for introducing a new bill into the current legislative session. Introducing a new bill at this stage would require approval by (a) the Rules Committee and (b) three-quarters of the full Senate. There is a chance that the bill could be funneled into the ‘placeholder’ SB 678 bill filed earlier this year by state Sen. Lou Corrrea, but Pechanga.net editor Victor Rocha told QuadJacks.com that the tribal bill was “completely separate” from Correa’s bill. Watch this space…
America’s “first legal” online poker set is going live today.
The site was made possible thanks to the LasVegas legislature rushing through a bill that
made it possible to play online poker inside the state borders.
It didn’t take all that long for a company to find a way to take advantage of the bill,
and Ultimate Poker wins the race to be the first real money gambling site on the web.
Not surprisingly, Ultimate Poker is run by two casino entrepreneurs Frank and Lorenzo
Fertitta. If anyone is going to know how to put together a legal gambling site on the ‘net, it
would be someone that already has a long history in the market.
While this is the first site to pop up since Nevada passed their legislation, there are others
that are simply trying to get off the ground.
America’s first legal online poker site will most likely soon by joined by the Gibraltar
based 888. That firm actually got their license to have a gambling website first but has had
problems getting the site going.
Internet gambling had long had a “wink-wink, nod-nod” relationship with law enforcement
officials in the United States. It was never really legal but it was seemingly tolerated by the
government.
That changed in 2011 when the Justice Department cracked down on sites that were doing
business with people living inside the United States.
That move seemingly sparked web gambling advocates to look for a way to actually make
the past time legal and found that a good first step was to go state by state.
Other states, like New Jersey have been giving bills like the one passed in Nevada a good
long look. One has to think that if enough states make that move that a national referendum
could be in the offing.
Thanks to an extension of its technology agreement with the GEObet Network, the Shoshone Nation tribe in Nevada will be able to launch real-money online casino gambling on the internet, at the moment excluding the U.S. players until the pastime gets legalized.
However, the service will go live globally, and project Shoshone chief William Bills and GEObet CEO Gerry Gionet announced that a target date for implementation is May 1st 2013.
According to Gionet, “With the majority of US tribes looking to establish play-for-free sites, we believe that moving to a full play-for-money online casino is a better entry point for the Shoshone Nation. We believe this puts a precedent into the market place and sets a template for tribes and tribal casinos to get into ecommerce business with both feet.”
In his statement, Chief Bills noted: “We need to walk before we run with any business but it is important for us to walk the correct path. Play-for-free is being sold as an entry point and so far it has not proven to be a successful entry tool for data collection. We believe that opening for commercial business online is the correct path and GEObet Network is providing the pathway for us.”
It was added by Gionet that the play-for-free market is heavily oversaturated, as there’s a vast number of social gaming free-play products out there. He also opined that the Shoshone will gain valuable experience in e-commerce and Internet gaming via the real-money approach, noting that through the GEObet Network the upfront cost is zero.
4 APRIL 2013 (Las Vegas, Nevada) – Chief William Bills of the Shoshone Nation of Nevada and Gerry Gionet founder of GEObet Network have signed a further extension to the exploratory deal announced on February 20th.
The new deal will bring the Shoshone Tribe Online Casino fully into online gaming worldwide by May 1st and will currently exclude players from the USA. Gerry Gionet stated, “With the majority of USA tribes looking to establish play for free sites Chief William Bills and I believe that moving to a full play for money online Casino is a better entry point for the Shoshone Nation. We believe this puts a precedent into the market place and sets a template for tribes and tribal casinos to get into e-commerce business with both feet within the GEObet Network.”
Chief William Bills stated, “We need to walk before we run with any business but it is important for us to walk the correct path. Play for Free is being sold as an entry point and so far it has not proven to be a successful entry tool for data collection. We believe that opening for commercial business online is the correct path and GEObet Network is providing the pathway for us.”
“With the jury still out on the viability of conversion rates of play for free to play for money customers, we wanted to avoid investing into something that does not make money and is not proven,” says Gerry Gionet.
“As well the play for free market is heavily oversaturated with a large number of social gaming free play products vying for audience and working to monetize the player bases. We believe the Shoshone’s will gain valuable experience in e-commerce and Internet gaming by taking this approach and through the GEObet Network the upfront cost is zero.”
Editors note:
About the GEObet Network www.geobetnetwork.com
The GEObet Network, operated by OlympianGroup.eu under agreement with North Star Entertainment Ltd, provides a 100% turnkey iGaming solution for tribal and independent land-based casino operators. GEObet.com, launched in September 2011, is the first iGaming brand operating on the network. Created by respected tribal business leaders and managed by a top international team of industry veterans, the GEObet Network offers a simple and cost effective way to have a world class online business operating in less than 90 days. With its industry leading and award winning online gaming products, the GEObet Network enables casino operators to defend and retain their customer base against online raiding by the major casino consortiums. Licensed internationally in Malta, Curacao and Kahnawake, the turnkey system expands both land based and online casino business with complete legal compliance and virtually zero cost of development.
A proposed online gaming bill give rights to tribes, card rooms, racetracks and ADWs.
This tribal divide over online gaming has been most apparent in California, pitting some of the most important players in Indian gaming against each other. The Morongo tribe of Cabazon has spearheaded a drive that would legalize online poker in California, using the argument that if tribes don’t get involved at the very beginning of any online gaming discussion in the Golden State, they risk getting left behind.
The tribe did the unthinkable of partnering with some of California’s card clubs, usually the sworn enemy of Indian gaming. Other tribes, led by the Palas, wants to maintain the illegal status of online gaming, fearful that if it was to become legal, visits to the somewhat remote Indian gaming halls would plunge. The majority of the tribes hold this view, and an effort by the Morongos and the card clubs to establish the California Online Poker Association (COPA) with an accompanying play-for-free site was short lived.
COPA was formed to support a bill introduced by California Senator Rod Wright to legalize online poker. While the measure failed in the 2012 legislature, it is back this year, with some changes that address the concerns that some tribes had, but leave some of the objectionable issues intact.
Bill Details
Some of the provisions of Wright’s 2013 bill (SB 51) include:
Legalizes only internet poker (Wright’s 2012 bill included other casino games) and only poker games approved by the state Department of Justice;
A five-year license, with a $5 million licensing fee that covers investigations and suitability review, with additional fees determined for regulatory costs;
A one-time $30 million deposit into the general fund which will be credited toward a 10 percent tax on gross revenues;
Gaming tribes with casinos operating for three years or more, racetracks, card rooms and account deposit wagering companies (ADWs) in good standing are all eligible for licensing;
Excludes non-gaming (non-compacted) tribes;
Provides that internet poker does not violate the California Constitution, nor does it violate tribal exclusivity guaranteed under the state Indian gaming law and compacts;
Requires investigations of all applicants, including tribes;
Requires tribes to waive tribal sovereignty for licensing investigations and patron disputes;
Regulatory power rests with the state Gambling Control Commission;
Prohibits “aggregation” of computers for internet poker play (bans internet cafes);
Players must be located in state and be over 21, in order to quality for the state waivers under the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA);
Prohibits companies that accepted bets in the U.S. after the passage of UIGEA from participating in California online poker;
Provides a long list of responsible gaming provisions that each online poker room must comply with;
Requires winning players to declare their profits for tax purposes.
Pros and Cons
At the Western Indian Gaming Conference (WIGC) at the Morongo Casino Hotel in February, Morongo Band of Missions Indian Chairman Robert Martin explained why he continues to support a bill that would legalize online poker in California. Martin said the Morongo Band was behind an effort organize pro-online gaming tribes and the card rooms in the California Online Poker Association, a group that disbanded following the failure of Wright’s 2012 bill.
“When I was serving on the Morongo tribal council 26 years ago, the U.S. Supreme Court rules on the Cabazon case, transforming the lives of hundreds of thousands of Native Americans” he explained. “That effort was not without controversy. We took some grief and criticism from public officials, the media and some other tribes. It all proved to be worthwhile and it was the right thing to do at the right time.
“We’re at another crossroads today. The internet has revolutionized every industry it touched, and gaming is no different. Online gaming is growing at five times the rate of land-based gaming. Tribes must be open to change and be able to adapt to the marketplace if we are to remain relevant. Pursuing internet poker doesn’t mean we are abandoning our bricks-and-mortar casinos.”
Leslie Lohse, the vice chairwoman of the California Tribal Business Alliance, an organization made up of tribes that opposed COPA’s path the online poke, says Wright’s new bill hasn’t changed enough to satisfy the tribes concerned about online gambling. “So far, his language has not addressed the issues we raised,” she says. “The bill still rejects our sovereignty and doesn’t talk about what happens if our revenue streams from the bricks-and-mortar facilities fall. They keep telling us it will not affect us, but we have not seen any proof.”
George Forman, the managing partner with the law firm Forman & Associates, presented the case for and against Wright’s bill at the WIGC. While he found many things in the bill acceptable to tribes, the only avenue for tribes to avoid investigations into their tribal gaming operations would be to set up a commercial company, an LLC. He also complained that the bill does not recognize existing licenses and tribes, and wondered why they should be charged an exorbitantly high $5 million fee for investigations that have for the most part been completed or not or are not necessary.
Martin said that there will always be differences among the state tribes, but there has to be some negotiation to get a general concensus. “There is no one-size-fits-all solution to this issue in California,” he says. “While the legistature would like to put us all in one box, it just doesn’t work. There are more than 100 Tribes in California. It’s unlikely that we’ll all agree completely on any issue.”
Lohse was encouraged when COPA was disbanded, and hopes that the two sides can meet in the middle. “To their credit, they’re now considering what we have to say,” Lohse explains. “We’re not talking about totally opposing any kind of online gaming; we’re just concerned about the negative impacts that might occur to our businesses and our sovereignty. We hope we can open some dialogue with the other tribes without the involvement of card rooms, racetracks or ADWs, so we can look at it more collectively. We’re trying to start with things that we all agree upon and work up to the tougher issues. We’re hopeful we can get the tribes together on the same page, as much as that’s possible.”
Martin says the tribe can’t simply ignore what is happening. “Tribes must have a voice in how internet gaming is developed,” he says. “If we don’t, others will. We don’t want to look back in 25 years from now with regret if we let this opportunity pass.” Lohse isn’t ready to ignore the bill, but wants to take it slow and address issues that tribes have with the bill. “We have a monopoly here in California with regards to gaming,” she says, “and I haven’t seen anything yet that would fully protect what we have today. It’s going to be difficult to come up with any bill that would address all the concerns that we have.”
Source: Patrick Roberts, TribalGovernmentGaming.com
Governor Chris Christie has today signed legislation that will see New Jersey become the third state in America after Nevada and Delaware to legalise online gaming.
The Republican conditionally vetoed a proposed bill earlier this month but said that he would sign it if a number of alterations were made. The amended legislation, which included a provision for a ten-year trial period for Internet gambling and a 5% increase in the tax on winnings to 15%, was comfortably passed in the state Senate by 35-1 and in the Assembly by 68-5 with a single abstention.
Christie’s signature now authorises New Jersey to offer a selection of online slots and casino games in addition to online poker.
‘This was a critical decision, and one that I did not make lightly,’ Christie said in a statement.
‘But with the proper regulatory framework and safeguards that I insisted on including in the bill, I am confident that we are offering a responsible yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole.’