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State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

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Page 1: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

State-By-State Internet Gaming Expansion

GamblingCompliance

National Council of Legislators from Gaming States| June 15, 2012

GamblingCompliance

Page 2: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

U.S. Office1250 Connecticut Avenue NWSuite 200Washington, D.C. 20036T: +1 202 261 3567F: +1 202 261 [email protected]

U.K. OfficeSuite 704, Capitol Tower91 Waterloo RoadLondon SE1 8RTT: +44 (0)207 921 9980F: +44 (0)207 960 [email protected]

GamblingCompliance

GamblingCompliance

About us:

GamblingCompliance provides government officials and gaming industry professionals with independent and timely regulatory, legal and policy analysis – in one, fully-customizable online subscription service.

Comprehensive analysis of regulatory change and public policy discussions

Monitoring Internet gaming legislation Off-reservation gaming and ‘Carcieri’ Congressional hearings and conference reports Global market statistics via GamblingData

Page 3: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

GamblingCompliance Internet Gambling State Legislative Summary *| June 2012

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Status Poker Casino Lottery

California Pending: SB1463 is pending. Bills must pass by August 31.

Delaware Pending: HB333 is pending. Session ends June 30.

Hawaii Dead: Identical bills HB2422 and SB29 both died in committee.

Illinois Pending: Introduced as an amendment to property tax measure HB4148 may be considered in veto session (Nov 27-Dec 6).

Iowa Dead: SF2275 passed Senate but died in House.

Maine Passed: Effectively prohibits Internet lottery sales.

Massachusetts Withdrawn: Budget bill amendment 827 was withdrawn. (SB 132-Lottery Pilot Program pending).

Michigan Pending: SB1003 is pending. Session ends December 31.

Mississippi Dead: HB1373 died in committee.

New Jersey Pending: SB1565 and A2578 may be considered in the fall.

Pennsylvania Withdrawn: Amendment to HB65 withdrawn shortly after introduction.

Utah Passed: Expressly prohibits all Internet gambling, effective July 1.

Washington DC Passed: Lottery iGaming bill repealed in February.

*Does not include ADW legislation

Page 4: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

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U.S. Internet Gambling State Prohibitions and Discussions*| 2011-2012

Prohibited

Regulated

Legislation Pending

Formal/Informal Discussion

*Does not include ADW legislation or informal discussions involving solely online lottery ticket sales via the Internet

Page 5: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

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California Delaware Illinois New Jersey

• Regulatory Structure: Internet poker may be offered for play by licensed card rooms, gaming tribes, racing and ADW entities with oversight by the Gambling Control Commission and California Department of Justice.

•Games Offered: Poker only.

•Minimum Age: 21

•Tax Rate: 10% of GGR, $30m initial fee

•Regulatory Structure: Internet gaming offered on shared platform through the state’s three racetrack casinos, overseen by the lottery. Also allows lottery ticket sales through lottery.

•Games Offered: Internet table games (i.e. Blackjack, poker, craps etc.), Internet video lottery (i.e. slot-type games) and Internet ticket games (i.e. Online/draw and instant ticket games).

•Minimum Age: 21 for casino games/18 for Internet tickets

•Tax Rate: Same as land based.

•Regulatory Structure: Creates Division of Internet Gaming within the Lottery. Internet games offered via a single platform but can be offered through multiple affiliates. Division can license affiliates (casino and ADW operators)

• Games Offered: Casino games, including poker.

•Minimum Age: 21

•Tax Rate: No taxes but $5m affiliate license fee.

•Regulatory Structure: Internet gaming operated by Atlantic City casinos and overseen by New Jersey Casino Control Commission and Division of Gaming Enforcement.

•Games Offered: Casino games, including poker.

•Minimum Age: 21

•Tax Rate: 15%-25% of GGR

Page 6: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

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Nevada

2001 June 2011 Dec 2011 Feb 2012 May 2012 2013

Interactive Gaming Law is Enacted

Internet Poker Legislation Passed

Licensing and Operating Regulations Issued

Technical Standards Issued

First Licensing Recommendations Made

Live Play?

Page 7: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

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Looking Forward...

“Internet gambling is going to come. It’s interesting that seven or eight years ago, most of the industry was opposed to Internet gambling, and now it’s flipped.”

– Tom Swoik, Illinois Casino Gaming Association

“We want to make sure that states like Nevada, New Jersey and California, which are moving forward on Internet gambling, don’t get a competitive advantage on Illinois by legalizing it before we do. We don’t want Congress to close the door by passing a bill before Illinois does. We want to be grandfathered by acting first so the federal government won’t be able to prevent what we want to do on Internet gambling.”

– Ronald Holmes, Staff Member Illinois Senate President John Cullerton

Page 8: State-By-State Internet Gaming Expansion GamblingCompliance National Council of Legislators from Gaming States| June 15, 2012 GamblingCompliance

U.S. Office1250 Connecticut Avenue NWSuite 200Washington, D.C. 20036T: +1 202 261 3567F: +1 202 261 [email protected]

U.K. OfficeSuite 704, Capitol Tower91 Waterloo RoadLondon SE1 8RTT: +44 (0)207 921 9980F: +44 (0)207 960 [email protected]

Contact Information

Jennifer Webb, Esq. Regulatory and Legislative Manager, Americas T: (202) 261-3542E: [email protected]

GamblingCompliance |

GamblingCompliance

www.gamblingcompliance.com www.gamblingdata.com