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Monday, January 23, 2012

States Look To Internet Casinos, Online Poker To Boost Revenue

Casino industry representatives and exhibitors watch an online poker game during industry conference in Las Vegas. (AP)

More cash-strapped states are considering expanding gambling beyond their state lotteries to fill budget shortfalls.

Last month the Department of Justice reversed its stance and declared that online gambling is legal as long as states approve it.

How quickly will online poker games, which had all but disappeared in the U.S. since some high-profile indictments back in April, be going full tilt again? And how much revenue is there to be gained through internet casinos?


  • I. Nelson Rose, Whittier Law School professor and expert on gambling law and a legal consultant to governments and the gambling industry

Please follow our community rules when engaging in comment discussion on this site.
  • http://gregorycamp.wordpress.com/ Greg Camp

    Gambling is a tax that the gambler volunteers to pay.  I choose not to gamble, but I have no objection to allowing those who do to have their fun.

    • Anonymous

      I agree, it is their choice, but the question is ; We put limits on the use of alcohol because as a society we understand that “over choice-ing” that “fun” can and does have harmful effect on society as a whole. I believe that problem gambling, like drinking and driving, is greatly under reported; and that people will either seek government assistance to help them buy necessities or find ways to “enhance” their income.
      But perhaps I am just biased because of the loss of a company, a $300K house, and an inheritance due to a family member’s addiction .

      • Thinker

        Did he gamble on the stock market?

        • Anonymous

          are you kidding, the stock market is rigged. At least at the tables I know I will only loose 51% of the time. :)

      • Drolsh83

        repeat, poker is a beautiful game that requires multi-level skills. it is not, in fact, a gambling game.  do u play poker regularly? i doubt it so please don’t preach about something of which u have no experience with. 

        • Anonymous

          Well, I hate to point out the obvious, but if, as you said in your (or would you be more comfortable with ur?) reply to A.J. Averett that you won “consistently since 2003″ then somebody had to be losing.
          And, if some were winning and some were losing then, even though greater skill at the game will enhance your chances, you were at that point in time risking the money you had at stake. That is Gambling.

          Also my original post, and the original article were not speaking exclusively of your beloved game of poker. So, just in case you misunderstood the tone of my original post I will summarize.

          What do we do with the idiots that can’t control themselves and risk their families or their own well being? The proliferation of online gambling, such at video slots and instant scratch games, will put additional people at risk for addiction.

          Now, Drolsh83 go find some more marks.

          • Leader2p2

            I’m not responsible for what other people do with their lives. I want to do what I love. If other people want to destroy themselves while I’m at the table, that’s unfortunate. Most people losing money play well within their means. Now, if you could kindly let me get back to work, that would be great.

          • Anonymous

            I have posted a reply to this thread, and because I seem to be in control of your time, in that I can take you away from your work, please go read it.

          • Ymarky

            You know very little about the poker community as a whole, and obviously very little about the game.
             There are literally millions of people who love the game, and poker players donate millions of dollars every year to charities all over the world.
            You seem to have that old view of poker where a bunch of shady characters gathered around a table in the back room of a bar.
            Get over it.  That’s 50 years ago.
            Poker has become a legitimate competition and is embraced by every major media outlet in the world.
            ESPN airs the World Series of poker every year which has taken on a “Superbowl” like event qualities.
            The Travel Channel airs the WPT (world poker tour) on a weekly basis.
            These programs and others draw millions of viewers and generate millions of dollars in revenue which are circulated into our economy.
            Bottom line is… let us “idiots” mind our business, and you mind yours.

          • Anonymous


            I am beginning to form opinions about you and the culture you circulate in. 

            PLEASE, note. At no time did I say a single word against poker. I even clarified that point in a later post.

            I understand that your community may have been vilified in the past. I understand that you may be the focus of anti-sin campaigns. I understand that your public image may be an unsavory caricature.

            But don’t be so reactionary to someone who is on your side. My original letter said, “I agree, it is their choice”.

            BUT, the question, which has been completely ignored by the responses and if you pay taxes or even slightly care about other people, is; How will we deal with the increase in the number of people who can not control a gambling addiction, if, pure luck, low percentage games such as slots or scratch off tickets are available at the click of a mouse?

          • Steverinos

            Pure luck games, slots or scratch off tickets, are available within driving distance of most communities. If people are going to be degenerates, that is on them. Their inability to control their own vices should not infringe on my freedoms. Periods.

    • Leader2p2

      You can also make money playing poker if you’re willing to put in the time and effort.

  • A.J. Averett

    The whore and gambler, by the stateLicensed, build that nation’s fate.

      -William Blake, “Auguries of Innocence” (1803)

    • Drolsh83

      another genius who doesn’t know how to separate poker from gambling.  i’ve win consistenly online since 2003 because i was lucky the whole time in my “gambling”.  get a clue! ppl like u were part of the reason for black friday.

  • J Frog

    If all these big-box online gambling sites come online, what’s going to happen to the local Mom & Pop gambling businesses?  All those convenience store owners losing all that lottery business…it will probably cost lots of jobs.  And no more local bookies pouring their vigorish back into the local economy.  I wonder what the labor multiplier is on local gambling?  Surely someones done a study?

    • Freedom Fan

      This is an invalid concern. You might as well worry about the employment of mail man with the advent of email. Or how about the employment of the milkman with the advent of refrigeration. The idea that technology destroys jobs is a myth. What technology does is free up people to do other work. It has been doing so for centuries in it will continue to do so no matter how many time is this argument is brought up.

    • Gary Popcorn

      don’t worry im sure all the homeless people without computers will still be able to buy their lottery tickets at the store 

    • Leader2p2

      lol What about my job? How about you let the economy take care of itself instead of picking winners?

  • http://www.ohioken.com Ken Palosi

    While I enjoyed playing online poker in the past the prospect of seeing it become legal and in the mainstream concerns me. Gambling is everywhere in our society. There is no longer any stigma attached to gambling as state and local governments scramble to raise revenues through gambling. The problem is that we as a nation are not producing anything and as a result we have turned into a society which is feeding upon itself. Ohio recently legalized casino operations in the state and they are scheduled to open in March. The Ohio lottery now has online Keno games in bars. There are ubiquitious internet cafes on every corner offering supposedly legal “skill” games.  And don’t forget the Bingo games that are available almost every day of the week. Every weekend there are casino nights offered by community orginizations as fundraisers. One would think that eventually we would reach a saturation point where gambling is concerned.

    • Gary Popcorn

      I agree on your points about gambling but it is upsetting that online poker gets grouped into the same category with games such as roulette scratch tickets or whatever.  Online poker is a skill game as much as putting money into a Etrade account is gambling in the stock market.

      • http://www.ohioken.com Ken Palosi

        I agree that online poker is a skill game, but the trouble is – can we trust the sites we play on. Since the passage of the governments attempt to shut down online poker some very disturbing things came to surface about some of the sites
        I used to play at. I will probably play on any new sites in Ohio but I will only play the free games and tournaments. I will play only for recreation and will not give them any of my money.

        • Tilted

          Lets be clear Ken… Some very disturbing “allegations” were made by the DOJ. There have been no trials, no evidence, and no convictions.
          …and isnt it odd how “financial arrangements” have already been struck with Pokerstars and (soon to be..) Full Tilt?

          …and isnt it odd how shortly after these deals were struck the DOJ suddenly reversed its stance in web gambling?

          …and isnt it odd how the federal government and various states are now scrambling to introduce legislation which would legalize web poker..and in some cases other forms of gambling?

          All of this was planned. The DOJ “takes down” the competition (FT and PS) t0 make way for the american casino corporations (and other interests) to enter the web poker market virtually unchallenged.
          Thats what happened. The “big 3″ were set up like bowling pins and then extorted to get their businesses back into operation. Simple as that.

          Lastly, there is a big distinction between playing games of chance where you play against the house (slot machines, blackjack, etc..), and poker where the “house” merely earns a fee for providing a dealer and a table.

          Poker is an American game, and most of the worlds best players are Americans. I for one am proud of that and cannot wait until I can get back in the game.

        • Leader2p2

          Disturbing things like greedy people stealing money? I want my job back. I would be great if also I didn’t have to deal with criminals to do it. Bills like HR2366 do that.

  • Eb3design

    Allowing internet gambling will not add more than 5 jobs per
    state, unless Computer will have to start paying Income Tax.

    Being a computer Program, I know I make the program work the
    way I want.  If I am the “House”
    I am going to want to win… if I want to be smart, I can build-in psychological
    routines to make Players feel more confident to bet more, let them win hands to
    make them “think” it is fair. 
    How is anyone going to prove my site is not rigged.  The say Internet Poker is a game of skill…  so is Chess, but I would never bet money
    against my Computer Chess Set.


    We already have Internet Gambling… it is called the Stock


    Bad Bad Bad Idea

    • Drolsh83

      You are totally clueless. lol @ 5 jobs per state. go do some google research into how many people are employed by a company such as pokerstars etc.  As a regular online poker player i am always emailing back and forth with administrators for various account issues / game issues etc. you obv have zero knowledge of online poker. 

    • Leader2p2

      I guess I’ll have one of those jobs. Of course, you probably think an entrepreneur isn’t a job.

  • Rubye C. Wright

    There are several facts that come into play as to why online betting, legalizing marjana, and other things that people do to themselves as it is no more of a difference than  what cigarette and pharmasutical companies do to people, the following:

    1st The government on all levels , is represented by human beings, who should have zero rights in deciding what an individual can or can not do by brainwashing the minds of human beings which is housed in the individual body’s body and is not networked like the Borg.  People emulate government and government breaks all of the laws of God and then expects God to forgive them, why should the citizen feel that they have fewer rights than the government?

    2nd All 51 of the US Constitutions should be abolished as each is unconstitutional and therefore illegal and function for the sole purpose of advancing the whems of the politicians and the riches  1% of the population on the backs of the people who are in transition and therefore the middle and less forunate classes.

    3rd The government on all levels should have zero rights on telling any human being how each may or may not spend one’s money.

    4th Human beings in both the private and the public sectors should have zero rights in telling another human being what a human being may or may not do with one’s own body which also houses each individual’s brain and people should have that right, as this is suppose to be a pseudodemocracy.  Because there is no difference in a policeman or a soldier going out on orders to murder someone, people have a tendancy to emulate the model which is the government who represents only the 1% and have these human beings loose their souls on behalf of the greed of the 1%.

    5th Since the laws protect only the 1% of the population and politicians, judges, policemen, and soldiers by allowing these human beings to get away with treating the rest of the population  any kind of a way each of them sees fit, it is a real joke that we call the US a democracy, as no one is laughing except the 1% at the punch line.

    So why does this country even need to be #1; or why is it that important?  If it is to make the richest 1% look good around the world while they rape and pilferage the world, I say no thanks. How much does a rich person need that the politicans are willing to sell the country to the highest bidder to turn control of the minds of men over to the riches 1% and all politicans who are all crooked without exception.

    This has to do with online betting in that it should be legal and it should not be get up by private enterprise,  and government should insure that jobs are put in place something private enterprize is not going to do, and while a bet is just that and other than an operational fee people should not have to pay taxes on money that belongs to them anyway, as politicans have made it clear that they are not ethical caretakers of the citizens money and have repeated over and over again the propoganda of less restrictions creating jobs, as greed continues to be the motivating factor no matter what country you are looking at as the  richest 1% and politicans all over the world have a lack of ethics in common and are thieves who simply can help that legal theft absolutely corrupts the politican and politicans refuse to entertain new ideas as long as they hold up the 51 unconstitutional Constitutions. 

  • http://neilblanchard.blogspot.com/ Neil Blanchard

    Yikes — this is an economic and moral deadend…

    This is exactly what we do NOT need.

  • http://www.casinogrinder.com Casino Grinder

    I image online poker more like a sport. A brain sport. Though playing online casino isn’t a sport because it is based only on luck.

  • http://www.xufe.com/Italy-Serie-A/ Serie A

    I think these types of games
    are good source of entertainment & earning. Online betting is good in
    comparison to offline due to its comfort benefits.

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