Online Casinos still a Grey Area in the United States
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Following the news that New Jersey is considering legalising online gambling and, alongside this an announcement that the final stages of the Unlawful Internet Gambling Enforcement Act (UIGEA) have come into force, it appears that online gambling is still a grey area in the US. The situation has become even more confusing, after Randall Sayre, of the Nevada Gaming Control Board discussed the “blurred” relationships between online casino and poker operators who create twin gambling sites.
Sayre is referring to the common trend amongst operators, which involves creating a .com version of the casino/poker room which accepts wagers and a .net, which acts as an informative guide to gambling games. As the .com can be accessed through the .net website, Sayre has recommended that Nevada casino operators steer clear of working with internet gambling companies; even if they’re advertising their .net website.
When discussing the UIGEA, Sayre made clear that the “lack of federal criminal prosecutions under” the new regulation “should not be interpreted by the gaming industry as a lack of interest by state and federal law enforcement and regulatory agencies on this issue”. Sayre went on to note that the Nevada Gaming Control Board is currently assessing the legality of Nevada gaming operator’s relationships with online gambling companies on a “case-by-case basis”. It’s believed that regulators are currently investigating 888’s relationship with Harrah’s, which provides the land-based operator with software for its UK focused online casino. Cases involving The Venetian and PokerStars.net have also been mentioned with regards to investigations.
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Nothing Grey About It
If you look at the letter posted on the Nevada Gaming Control Board web site, there is nothing grey about online gambling that accepts wagers from U.S. players, it is illegal under U.S. law to offer such services. The letter is about promotional relationships and other relationships between Nevada casino operators and online gaming service providers. Nevada casinos are not permitted to do business with persons or entities operating in violation of state or U.S. federal law, particularly when the laws that are being violated are gambling laws. The letter clearly identifies several laws that are violated by accepting wagers online from U.S. players.
The grey area or blurring is between the .com and .net sites, such that the regulators do not distinguish between the two. In other words, it is not ok for Nevada casinos to associate with .nets that are related to or affiliated with .coms that accept wagers from U.S. player.
http://gaming.nv.gov/documents/pdf/internet_gaming_response.pdf