Notwithstanding so-called "Black Friday," the move to legalize internet gaming in the United States is proceeding forward at a determined pace. A quick update of federal and state developments is in order now that the early group of internet gaming conferences has passed by and we are in the summer doldrums.
With the federal government mired in a historic budget debate, federal internet gaming legislation remains on the back burner. While the budget battle is focused on an August 1 deadline, it may very well extend into the fall, with presidential election fever kicking into high gear then. This continues to present significant obstacles to enactment of federal internet gaming legislation. Consequently, intrastate internet gaming continues to be a hot topic at the state level.
The District of Columbia's intrastate gaming legislation is a hot topic in Washington. The Washington Post has been publishing articles critical of the enactment of the legislation. In a July 4 editorial, the newspaper raised questions concerning technology security, the impact on local neighborhoods, and the federal government's position on internet gaming. The heat is clearly being placed on the D.C. Lottery and the D.C. Council. It remains to be seen if and how rapidly implementation of the legislation will occur. City officials announced on Monday that the start date will be no earlier than October and is likely to be deferred into 2012.
The California Oversight Committee conducted an information hearing on Tuesday (July 12) on both the Wright and the Correa intrastate internet gaming bills. Senator Correa has filed amendments to his bill (SB 40) that (1) open the market to all card rooms and tribes without the requirement for a consortium and (2) require licensees to apply for a license within 90 days after enactment of the legislation together with a prepayment of $50,000,000 against future revenues, with that prepayment jumping to $250,000,000 if the application is filed after the first 90 days. The fee structure proposed by Senator Correa is strongly opposed by the industry.
The Florida legislature has adjourned for the year. However, this is the time of year when 2012 legislative efforts commence in earnest.
Efforts to bring the various elements of the gaming industry together in support of a comprehensive intrastate gaming bill are continuing and are expected to gain momentum in the coming months.
New Jersey legislators continue to work on legislation designed to address the concerns expressed by Governor Christie in his veto of the bill passed by the legislature this past spring. Governor Christie continues to profess no interest in running for President on the Republican ticket, notwithstanding the general lukewarm reaction to the current field of candidates. Should Governor Christie have a change of heart, this would adversely impact enactment of intrastate gaming legislation in New Jersey. If he remains firm in his noncandidacy, then prospects for enactment of legislation acceptable to the Governor increase significantly.
Other states, including Nevada, Illinois, and Iowa, remain in the mix. However, at least two of those states (Nevada and Illinois) are not expected to make a major move without a sign-off from the federal government.
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