The business press and lots of investors consider Internet commerce all but dead. I doubt that they will be proven correct. In Nevada, the large B & M gaming companies are beginning to take a serious look at e-gaming. The major challenge: Regulatory control, which means software that can facilitate compliance. I don't know what Mr. Vogt's planned report will say about WINR's future with e-gaming, but there would appear to be some potential there, if a good, tested product can be presented. Of course, I would hope that Messrs. Oheri, Vogt, and Prokisch are currently thinking beyond the narrow box of simply selling transaction processing services.
From the Las Vegas RJ:
<<Tuesday, May 22, 2001
Copyright © Las Vegas Review-Journal
Bill legalizing Internet gaming clears Senate panel
Full Senate will now consider measure
By SEAN WHALEY
DONREY CAPITAL BUREAU
CARSON CITY -- A bill that could lead to casino-operated Internet gambling sites passed the Senate Judiciary Committee on Monday, bringing Nevada one step closer to being the first state to offer the wagering technology if it is legalized.
Assembly Bill 578, amended to allow smaller casinos in rural counties to engage in Internet gambling, will now be considered by the full Senate. Senate changes to the bill would have to be approved by the Assembly before the bill could go to Gov. Kenny Guinn for his possible signature.
Nevada gaming regulators support the legislation.
Under the bill, casinos would have to pay $250,000 to be licensed to offer Internet gambling, and manufacturers engaged in the production of Internet gambling equipment would pay a $125,000 fee.
The bill would allow the state Gaming Control Board to develop regulations governing the operation of Internet gambling sites. The sites could then be activated if they are found to comply with federal law.
"It is important for Nevada to get control of this issue early," said committee Chairman Mark James, R-Las Vegas. "If we don't, we will face two problems. First, Nevada will miss the boat in terms of Internet gaming. Second, it would be a disservice to the public throughout the world."
James said that Nevada, with its standard of above-board gaming that is fair to players, must be ready to compete with the unregulated and questionable Internet gaming sites that are ready to ramp up once the practice is made legal.
Sen. Dina Titus, D-Las Vegas, a member of the committee, said she supports the bill because she has confidence in the state Gaming Control Board's ability to enact regulations governing the operation of Internet gambling sites.
Authorizing the establishment of Internet gaming is important for Nevada so the state can be ready if it is legalized, she said.
Sen. Terry Care, D-Las Vegas, objected to the final version of the bill, however, saying that regulations allowing for casinos to operate Internet gambling sites should come back to the 2003 Legislature so policy issues can be thoroughly debated.
The bill as approved by the committee would allow only large casinos with unrestricted gaming licenses to offer Internet gaming in Clark County, and Care questioned whether the entrepreneurial spirit that helped build the gaming industry would be stifled with such restrictions.
Care, also a member of the Judiciary Committee, said he did not oppose the concept of Internet gambling. But he added that questions regarding taxes and fees on such activities should be addressed by the Legislature after the regulations are established by the Gaming Control Board.
The measure also does not address the issue of problem gamblers, he said.
"I see this not as gaming so much as e-commerce," Care said.
During hearings, state regulators said that about 18 months would pass before regulations are completed and licensing of Internet casinos begins.
Internet casinos would pay a 6.25 percent tax on their winnings, the same amount now assessed in traditional casinos.>> |
