Legal Internet Gambling

New Jersey will be the first of many states to start legalizing internet gambling. The billions in revenue will make many rich. With the knowledge on this site we should be able to come up with some ideas on how to capitalize on this. The stock market and the use of options on the public companies listed on the exchanges should be one way to accomplish this. Thoughts put into this rather than wasting time on betting patterns will make us much more money. Any thoughts on this? Any ideas might trigger something that could benefit us all if we share.

I don't see how this will help an individual. If gaming licenses go to the big boys their brick-n-mortar joints will dilute results. If it goes to smaller players expect them to be closely-held and you will not be able to invest. What would be nice is if they had some "set" software that anybody could buy, customize the look, do their own marketing, and bank the games.

These casinos will be video. Any software companies that will be supplying these game or doing any formatting work. Tha atlantic city casinos will increase their revenue 10 fold at least, most going to the bottom line. Any one have any thoughts on which casinos would benefit the most? Expand your thinking. Some of these are public.

Sorry to admit that I am old and not very internet savy. Type with one finger and can't keep up with my thoughts. Have made a lot of money in the stock market. Need some direction from this sites expertise.

don't see how *internet* gambling won't just be spread to all the states; as soon as one can can do it , all can do it.

you didn't provide a source. From the last time I kept up with it, states would offer their lotteries online very soon. Then I heard NJ would go for more than that but that it would go to the supreme court. What have you heard exactly?

This is what I write about for a living. New Jersey's governor originally vetoed it. Had he not, they would probably be the first state with internet gambling besides sports betting (Nevada has had online and mobile sports betting for 2-3 years). It seems now he says he will not veto it if it comes back to his desk, although their state constitution may require amending, which is why he vetoed it the first time. He did not think it could withstand a court challenge last year so I do not know why he thinks that has changed. Then again, he wants to go ahead with sports betting which clearly violates federal law, so who knows.

As it stands now, Nevada will launch online poker later this year. It has already been approved, software providers just need to get approved and licensed. Internet gambling is already legal within the resorts, but not outside of them. Several other states are trying, but those states seem to run into problems with tribal interests in many cases. If a state with tribal casinos allows their off reservation casinos to offer online poker, the tribes can do it untaxed by IGRA regulations. No gaming company is going to be willing to pay a licensing fee if the tribes will get a free ride. They will be at too big of a disadvantage from day 1.

If I had to make a guess, the #1 reason online gaming has not happened yet is the tribal angle of not having to pay taxes if other companies can do it. The states could let the tribes have a monopoly, but if there are casinos off tribal land, they will fight that to the bitter end. It will cause more problems than it will solve. I feel states without tribal casinos, or states with only tribal casinos, will be the most likely to pass it. There are too many problems if the tribes and casino companies have to work on a compromise because there really is not one.

Washington DC's lottery has approved online gambling, but it may never get off the ground. Illinois is trying hard to get theirs off the ground too but it is still a few steps away.

How do you invest? It is likely all of the licenses will go to established B&M companies. You will have to invest in them. In Nevada, there are separate software and casino licenses for poker. IGT already owns an online poker network that services players outside the U.S. They are just flicking a switch away from being able to use that software in the U.S. Caesars Entertainment owns the WSOP and already has a real money poker room for UK players through 888. MGM and Boyd are partnered with BWIN/Party, provided BWIN/Party can get licensed, which I have doubts about. The only chance I feel the average person can get directly involved is in the marketing side. In Nevada, that requires a $2500 licensing fee and background check. Who knows about other states, because no other state besides NV has gotten that far. Washington DC's is through their lottery if it ever flies, which I have my doubts about too.

Each state will have to pass their own legislation to legalize gambling. A few states will be hung up on the morality of gambling and will do nothing. Christy vetoed NJ first attempt because if the wording. He is open to passing something with different language. To much money involved for this not to move foward.
It might go to the supreme court, but once that train has left the station it is hard to stop.

Quote: odiousgambit

don't see how *internet* gambling won't just be spread to all the states; as soon as one can can do it , all can do it.

you didn't provide a source. From the last time I kept up with it, states would offer their lotteries online very soon. Then I heard NJ would go for more than that but that it would go to the supreme court. What have you heard exactly?

The feds will almost certainly never pass regulations. By the time they get around to it, too many states will have done it without them. There is also the argument that gambling is a state right, and I feel any federal law would get challenged and drag on in courts, giving states more time to make their own laws. My own personal opinion is that I do not want the feds in on it. All they will be is another hand in the tax jar, and will provide no additional services for their part. Any law that would pass would require an opt in as the feds cannot force a state to expand gambling, so it will not be all at once no matter what. It is going to be up to each state to pass their own gaming laws, even if there is a fed solution.

Online lotteries are already legal. Illinois sells lottery tickets online. I think Minnesota does too. The Wire Act opinion in December clarified this was legal, and that the feds would not get in the way of any online gambling as long as state law specifically allowed for it. That ruling covered all gambling except sports gambling (excluding fantasy sports which got an exemption in the UIGEA).

Pokeraddict. Thank you. Very infomative and sounds dead on. Are none of these companies public? They would be better IPO'S than facebook.

Quote: dihaig

Pokeraddict. Thank you. Very infomative and sounds dead on. Are none of these companies public? They would be better IPO'S than facebook.

You can invest in most of the companies that will be involved. In NV, CZR, MGM, BYD, SHFL (I forgot they also own an online poker network outside US), IGT, BWIN/Party (used to be largest online poker room) and more.

I wrote an article that fits this exact discussion back in December. It is on a non profit site so I hope the mods allow it. I do not own the article or the site, so copying and pasting it here is not an option. The info might be slightly dated as it is six months old. For example, Shuffle Master is acquiring Ongame. At the time, Caesars was not public, and I think they are a horrible investment anyway since they are over $20 billion in debt and generate less revenue than their interest payments. It is still a good start.

Gaming Stocks Affected by Online Gambling

Christy is also going after sports betting. If any of the atlantic city casinos get into this or set up their own internet site for casino gambling their revenues should explode. Nothing against Bovada, but I would feel much more comfortable betting on line with an atlantic city casino. Their should be a way to participate though the publicly traded casinos in atlantic city or their parents. I have never been to atlantic city so have no idea what casinos are any good.

Thank you,thank you. Exactly what I was looking for. I hope everyone realizes how much money you could make them.

Quote: dihaig

Christy is also going after sports betting. If any of the atlantic city casinos get into this or set up their own internet site for casino gambling their revenues should explode. Nothing against Bovada, but I would feel much more comfortable betting on line with an atlantic city casino. Their should be a way to participate though the publicly traded casinos in atlantic city or their parents. I have never been to atlantic city so have no idea what casinos are any good.

I think the sports betting battle will be a nasty mess. The casinos are not going to want to risk getting in trouble in other jurisdictions they have licenses in by blatantly violating federal law, nor will they want to build sports books to have to trash them later. The state owned tracks might be the only place that offers sports betting until the federal battle is settled over the Bradley Act. I wrote an article just yesterday about that on that same site I linked to a few posts ago.

The online gambling bill is completely separate from sports betting, and has yet to pass their legislature this time. It passed once, but as I mentioned it got vetoed because Christie feels (felt?) the state constitution only allows casino games in Atlantic City. He said he wanted the citizens to change the constitution, but public polls show there is not any support for that. Keep in mind if AC casinos were allowed to offer online gambling, it would only be to people that are inside NJ. If you were in NY, PA, or wherever else, you could not play, unless your state later joined the pool which would be legal under federal law as long as state law specifically allows it.