New York Senate Discusses Online Poker Bill
8 years ago
11 Sep
A New York Senate hearing this week discussed proposals to legalize online poker in the Empire State.
Three members of the Standing Committee on Racing, Gaming and Wagering listened to the testimonies of seven witnesses, all of whom are involved in the poker, casino and racetrack businesses.
The proposal would authorize, license and tax internet poker games and estimates suggest New York could raise millions of dollars if the proposal passes. However, there are some concerns that it could have a negative impact on existing gambling establishments.
In a generally positive meeting, Chairman John Bonacic – a republican State Senator who introduced a 'poker only' bill last year – heard that themajority of gaming operators in the state are in favour of the introduction of online poker, although one had reservations and urged for a cautious approach.
James Featherstonhaugh, a lobbyist for the state’s nine existing ‘racinos’ (racetrack and casino combinations) asked for lawmakers to tread carefully, stating:
“We should be very cautious and very respectful of economics,” although he later conceded that “we're not saying this will destroy racing or gaming as it exists, we are saying we should proceed carefully as we do it."
In response to Featherstonhaugh’s ‘tread carefully’ approach, David Satz representing Caesar’s Entertainment instead recommended a more aggressive tack, stating that federal involvement was a reason for speed, not caution.
“Sitting and waiting as one witness suggested I think could be a mistake. What's at stake here is the 10th amendment rights for a state to determine its fate."
Satz’s plea comes on the back of South Carolina Republican Senator Lindsey Graham’s re-introduction of the RAWA (Restoration of America’s Wire Act) in both chambers of Congress for 2015. The Restoration of America’s Wire Act would rewrite the Federal Wire Act of 1961 with the goal of extending the Wire Act to ban most forms of online gambling (whether such activity was legalized and regulated by state governments or not).
"I think it's critical everyone understands the federal threat and effort by a certain individual to ban Internet gaming in all states is very real," explained Satz. "There were hearings in March, and there's rumour of more hearings this fall”.
John Pappas, executive director of the Poker Players Alliance - added that:
“New York can take comfort in the fact that other states…are doing this and doing it effectively”
Pappas than went on to counter some of the ‘anti-gambling’ lobbyists - who were not allowed in to the hearing - by explaining that online poker was in many ways a safer and more regulated environment than the traditional bricks-and-mortar casinos when it comes to problem gambling.
Also speaking in front of Bonacic and his fellow Senate Committee members Sens. Joseph Griffo and Kathleen Marchione, were representatives from MGM International, Caesars Entertainment, Borgata and Gambling Compliance.
MGM’s John McManus stated that “From our perspective, having a safe and regulated Internet poker industry that can provide tax revenue and all the benefits that come from that to the state is the way to go”, while Borgata’s Tom Balance conceded that, despite initial reservations that the online game would hurt his traditional casino business, he had instead found that “the online gaming customer is a different customer than the land-based customer… we found that an excellent addition to our distribution network."
The committee’s chairman, Senator Bonacic, said the proposal would be carefully considered. Of critical importance, he said, is whether online gambling would drain revenue from existing racinos and the three new casinos that plan to open within the next few years.
Comments
You need to be logged in to post a new comment