April 30, 2013

Online poker back: Legal website launches in Nev.

Only players in Nevada can participate, but it's seen as the beginning of expanded legal Internet betting in the U.S., along with moves in New Jersey and Delaware.

The Associated Press

LAS VEGAS — Poker devotees can now skip the smoky casino and legally gamble their dollars away on the couch — at least in the state of Nevada.

click image to enlarge

A sample poker game is played on the Ultimate Gaming website that launched Tuesday in Las Vegas.

The Associated Press

A Las Vegas-based casino subsidiary launched the first fully legal poker website in the United States on Tuesday morning.

The site, run by Ultimate Gaming, is only accepting wagers from players in Nevada for now, but it likely represents the next chapter in gambling nationwide.

Internet poker, never fully legal, has been strictly outlawed since 2011, when the Department of Justice seized the domain names of the largest offshore sites catering to U.S. customers and blacked them out.

This crackdown, dubbed "black Friday," left poker fanatics with two options: They could either get dressed and visit a card room, or break the law and log into an offshore site.

More recently, the federal government softened its stance on Internet betting, and three states — New Jersey, Delaware and Nevada— have legalized some form of online wagering within their borders.

With Tuesday's launch, Nevada wins the race to bring Texas Hold 'em back to the Internet.

"There was black Friday, and now we're going to have 'trusting Tuesday,'" said Ultimate Gaming CEO Tobin Prior. "Players won't have to worry if their money is safe. They are going to be able to play with people they can trust and know the highest regulatory standards have been applied."

About 20 other companies— including Zynga Inc., the creator of FarmVille— are preparing to open their virtual doors in the Silver State.

UltimatePoker.com will look familiar to anyone who participated in the poker craze of the 2000s. Only the account setup and login process have changed. Instead of checking a box certifying they are older than 18, players will click through a lengthy setup process involving Social Security and cellphone numbers. Only those older than 21 will be allowed to play.

Ultimate Gaming hopes to win the trust not only of players, but of regulators and politicians.

"It's an opportunity to show the world how to properly run online poker," Ultimate Gaming chairman Tom Breitling said.

Professional poker player Matt Stout, who decamped to Costa Rica after black Friday, said it will take more than one site, or even a whole state, opening its virtual doors to lure him back.

"Although it's exciting to see the beginnings forming for legalized online poker in the U.S., it's going to be a long time before it's lucrative enough to convince me to move back to the U.S. full-time," he said in an email.

Several cash-hungry states are weighing legislation that would allow them to tap into what is expected to be a multibillion-dollar market. Some bills would legalize only poker, as Nevada has, while others would throw open the gates to all casino games, including slots, as New Jersey and Delaware have done.

Earlier this year, Nevada Gov. Brian Sandoval approved legislation that gives him the ability to sign interstate Internet gambling deals with other governors.

Players around the world currently wager an estimated $35 billion online each year, according to the American Gaming Association. A fully realized U.S. online poker market could generate $4.3 billion in revenue its first year, and $9.6 billion by year five, according to London-based research firm H2 Gambling Capital.

Still, with federal efforts to legalize Internet poker stalled, it may be a while before a critical mass of states link together to lure professional players back from overseas and drive up jackpots.

(Continued on page 2)

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