Online Casino Edition – Casino News News about online casinos and gambling

Major developments have occurred within the Netherlands over online gambling. The government has stated that by 2015 Holland will open up its Internet gambling market. With this, a gambling authority will be created who will control any operations. The main reasons behind this move are not only to bring the gambling industry in line with other countries but also to increase revenue for sports related activities. It has been estimated that the auction of licenses for Internet gambling websites and lottery sites will amount to a yearly sum of approximately $14.1 million from the year 2012.

The Proposal

The proposal was put forward on 19th March 2011. This is a major development owning to the fact that previously the Netherlands was quite against online gambling, to the point that they took it as far as the highest courts within the European Union. It’s thought the move is mainly due to the fact that the new political party, elected in October of last year, is much more liberal than the previous administration.

The Present Situation

Within the Netherlands, it’s legal to gamble. However, the government has a very tight hold in terms of regulations, to the extent that all gambling throughout the country is under the control of the Holland Casino: the state gambling monopoly. This began as early as the 1970s with the introduction of the first ever casino in the Netherlands. This has since expanded to 14. The country has had a large amount of criticism from others within the EU due to this monopoly. Nevertheless, the Dutch has justified their legislation by stating that it ensures fair play for all involved.

In terms of online gambling, the story is slightly different. The Netherlands is not keen on outside gambling sites being used by Dutch residents. From 2005, there has been strong opposition to gambling over the internet. Currently, it’s possible for individuals living within the Netherlands to use gambling sites based within the country. However, these have still not been given Dutch governmental approval. In fact, the Dutch government has made its disapproval obvious. In 2008, it sent lists of major foreign Internet sites used for gambling to banks within the country. They insisted that no dealings should be made with these. However, the banks chose not to acknowledge this information, claiming that such a move would be illegal.

EU Pressure

Today, the EU continue to push for the gambling monopoly to be disbanded. In 2010, the biggest online gaming exchange in the world, Betfair, and the largest bookmaker within Britain, Ladbrokes, filed suits against the country over its gambling policies. However, they were unsuccessful. Within Europe- Britain, France, Sweden, Italy, and Austria currently regulate gambling online. It’s felt that the Netherlands should go as far as to bring in licensing for online poker, sports betting, and bingo. It’s also been put forward that licensing systems should be made clearer and that the competition should be opened up, as opposed to the current monopoly which is in place.

New Jersey, with the passing of a bill called the “Interstate Internet Gambling Bill,” has legalized online gambling. Online casinos can be run by the casinos of Atlantic City. The bill had a criterion that the computers and equipment used for running the online casinos must be present at the premises of the casinos with adequate security. An economic study conducted in the state showed that the passing of the bill would bring about additional jobs as well as revenue to the state and its people.

The Study

The Interactive Media Entertainment and Gaming Association is an association founded in the year 2007 in order to foster better relationship between the online gambling industry and the government. This association conducted a study. The study was called “Potential Economic and Fiscal Impacts of the Proposed New Jersey Intra-State iGaming Bill”. The study estimated an annual casino income of more than seven billion dollars. It also estimated that the bill would create jobs for around 57000 people. This is in the long run. In the short run, the bill is estimated to create 2000 jobs and bring in revenue of more than 200 million dollars every year as gaming yield. Short run benefits also include annual personal income of nearly 90 million dollars and more than 40 million dollars in tax revenue for the state of New Jersey.

The long run personal income per year should come to 2 billion dollars and tax revenues amounting to more than 400 million dollars. The bill is also expected to increase the investment in the state.

The study states that New Jersey will have the first mover advantage as it is one of the first states in the country to legalize online gaming. That would give the state’s casinos more or less a monopoly in the country. According to the study, the casinos in other cities who would want to start online gambling will have to set up hub in Atlantic City and this is sure to increase the tax and other revenues in the state. The 57000 jobs the bill is expected to create, especially in the high-tech sector, will raise the personal income of many people.

The casinos of Atlantic City have been slipping down in revenues since the economic slump. The state debt has been graded from AA to AA- by one of the leaders in the financial market intelligence firms, Standard and Poor, a part of McGraw-Hill Group, recently. This makes New Jersey one of the poorest states in the US. The state also faces a budget with a deficit of approximately eight million dollars. The state governor has been trying to bring up the state and put it back on the map. The bill legalizing online gambling will definitely contribute to this in a big way. And so the signing of the bill (the final signature from the governor) is likely to be inevitable. People of the state and casinos believe that there will be no going back on the bill now and New Jersey will achieve new heights in revenues soon.

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The California Nations Indian Gaming Association (CNIGA), an influential Indian organization, has voted for Senate Bill 40. This is one of the two bills which are competing to legalize online gambling within the state of California. Jerome Encinas, who is the Director of Government Affairs, stated that this is more favorable than Senate Bill 45 which is opposed by this Indian group. CNIGA is composed of both casino and non-casino tribes and the decision were not agreed on by all. The debate continues and a hearing in this regard has been organized by the Senate Governmental Organization Committee.

The Senate Bills Explained

Senate Bill 40 states that particular individuals or organizations can legally hold controlled games as regulated by the California Gambling Control Commission. Intrastate online poker would be allowed under the Commission. Anyone caught using illegal sites would have their finances or property seized and given to the Internet Gambling Fund which would be created through the bill. Fees, including registration costs, would be paid for by licensed companies. Slot machines and other devices would remain illegal.

Senate Bill 45 basically authorizes intrastate Internet gambling. If this bill was passed then any online gambling that took place would have to have been agreed upon by the state. Every hub operator would be required to provide no less than ten percent of their monthly gross revenue and an Internet Gambling Fund would again be formed.

The Current Situation

At the moment it has been calculated that more than 1.5 million Californians gamble on over 600 illegal Internet sites. It is estimated that there are over 2,300 online gambling sites operating outside US jurisdiction. These websites are offshore and are not monitored by the US and there is no way to provide legal protection to Californian players. Californians play at their own risk and any money lost is paid out to offshore companies.

In October, 2006, the SAFE Port Act was passed which included a section named the Unlawful Internet Gambling Enforcement Act (UIGEA). Basically, this states that it is illegal for US citizens to take part in interstate online gambling. Intrastate gambling is allowed as long as bets stay within that particular state exclusively.

Future Regulation

Through the legalization of online gambling it is hoped that tighter regulations can be created. There are two main reasons for this. The legalization could create conditions both in favor of the player and the state. Firstly, by having a better hold, the government can ensure that the games are safer to play. The player also has the law to fall back on should they find themselves in a bad legal situation. Secondly, instead of illegal, offshore organizations benefiting financially from these games, the California State can make sure that they reap the rewards instead. It has been calculated that the additional revenue could amount to around $1 billion over a decade if the legislation is passed. In a state with a current deficit of more than $25 billion, this would not go amiss.