Lawmaker from Nevada States that PokerStars Needs to Overcome a Credibility Issue

August 3, 2012

PokerStars recently reached an agreement with the United States Department of Justice. The agreement is worth $731 million. PokerStars is based on theIsle of Manand will only be allowed to enter the American market again if can get a state license or one under a federal regulatory network.

PokerStars and the law

For several years PokerStars continued its operations in theUnited States despite the Unlawful Internet Gambling Enforcement Act of 2006. According to the legislations, internet gambling with real money was declared illegal. A large number of online casino exited America’s cyberspace but three major casinos namely PokerStars, Full Tilt and Absolute Poker continued their operations until the feds came down on them with full force in the spring of 2011.

The gaming industry in the States

Nevada has a major focus on the online gaming and is pioneering the state-by-state online gambling legalization. The gaming regulators in the state have adopted rules for this industry and have given three companies licenses to start their web poker business. If things proceed as planned, online gaming for real money could be witnessed even before 2013.

Will PokerStars get entry too?

PokerStars has added to its massive real money player database with its recent acquisition of Full Tilt Poker. William Horne, a State Assemblyman stated that the new acquisition could make PokerStars more attractive toNevada. Horne is a member of the Nevada Gaming Policy Committee and is one of the sponsors for the Nevada online gaming bill.

Horne thinks that PokerStars has an issue with credibility to overcome before it can be a part of the market in theUnited States. He knows this from experience of working with the online casino operator extensively before the whole Black Friday incident.

PokerStars has been keen on gaining a foothold inNevadafor quite a while now. The online casino was even ready to payNevada4% of its rake from its international earnings. PokerStars managed to get a strategic partnership with one ofNevada’s dominant casino operators known as Wynn Resorts.

Horne stated that he feels PokerStars was not candid while it was dealing with lawmakers of the state. He thinks the company might have had inkling about the ongoing federal investigation. Horne added that PokerStars couldn’t have burnt any bridges inNevadaas the state is very thorough when it comes to companies that apply to the state. On this note, he added that PokerStars might deserve a license after all.

On the 31st of July, the Chairman of the Gaming Control Board, Mark Lipparelli refused to comment on the prospective applicants. He only said that although the gaming commission is not expecting perfection from application, there probably will be several companies who will fail to get approved by Nevada. Some gaming companies have even decided they won’t be able to make the cut after looking through Nevada’s regulatory standards. But it is still not sure if PokerStars will apply for the license or not.