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IN BUSINESS GAMING STATE GEARING UP FOR ONLINE POKER LICENSING By Richard N. Velotta senior staff writer The state Gaming Control Board in February will begin taking applications to license companies to operate Internet poker sites, according to a state gaming regulator. Mark Lipparelli, chairman of the Control Board, told industry professionals attending the two-day U.S. Online Gaming Law conference at Aria that the agency would be geared to begin investigations that month. Speaking Nov. 10 at the conference, Lipparelli said the process should be quicker for companies already holding other licenses in Nevada. Once licensed, companies would be able to offer online poker play within the state's boundaries in closed-loop settings similar to the way some companies offer sports betting online or by telephone. Companies still wouldn't be allowed to offer online poker play to people living outside Nevada's borders. The federal Unlawful Internet Gambling Enforcement Act prohibits companies from accepting payments related to online wagering, but allows several exceptions, including intrastate and intratribal wagering and fantasy sports. Companies with other Nevada licenses would have the new title attached to their licenses while companies new to the state would be vetted with full licensing investigations, which often take several months. Current licensees seeking online poker licensing will GAMING EXPERT: LEGAL ONLINE POKER ISN'T IMMINENT By Richard N. Velotta senior staff writer A prominent gaming attorney says he doesn't expect an online poker bill to be passed anytime soon, even though the demand is present, states are clamoring for tax revenue and sufficient technological safeguards will be in place to prevent underage players from gambling. I. Nelson Rose, a distinguished senior professor at the Whittier Law School in Costa Mesa, Calif., said he was pessimistic about the passage of legislation because federal lawmakers this session demonstrated they couldn't come to an agreement on any significant legislation. Rose was a speaker Nov. 10 at a two- day conference on online gaming law at Aria (see related story above). Many of Southern Nevada's leading gaming attorneys attended the conference, which featured scholars, regulators and legal experts on topics that ranged from the prospects of passage of online gaming legislation to the obstacles European online gaming companies would have partnering in ventures in the United States if and when Internet gambling is approved. Rose said there were many potential pathways for the legalization of online gaming, and he listed six states that had the lead in exploiting online poker once approved. In addition to Nevada, which is expected to approve online gaming regulations and standards next month, Rose named New Jersey, Iowa, California, Florida and Massachusetts as having the inside track. New Jersey and Iowa already have regulatory regimes in place, and the other three states have large populations or strong gaming cultures. More than a dozen other states also could exploit online poker, if approved. Most of those states have either strong tribal gaming centers or active commercial gaming. Rose said most commercial gaming companies in the United States would prefer federal legislation for online poker for a consistent policy across state lines. Several states, including Nevada, are developing their own online regulatory rules to avoid being behind other states. Rose said Nevada could be at a disadvantage because of its small population base, if the federal government enables states to establish rules for their own residents. have to prove that their technology will be able to limit play to state residents of legal age. "We've taken our brick-and-mortar operational standards to a new level," Lipparelli said. "We're going to continue to be flexible, but we think we've set the bar high for licensing and suitability." Guided by laws passed by the Nevada Legislature earlier this year, the Control Board and the Nevada Gaming Commission began drafting regulations and technical standards over the summer and are on the verge of approving them in December. Lipparelli said because the online gaming environment was a new world, it was possible that regulatory revisions would be considered in the months following initial passage of the new regulations. About 75 scholars, regulators and legal experts from across the globe attended the conference. In a panel session, former Rep. Jon Porter gave a bullish assessment of the prospects for passage of a federal Internet poker law. "I think legalization is closer now than ever before," said Porter, who served three terms in the House and now is an adviser to the Poker Players Alliance. A day earlier, gaming law expert I. Nelson Rose told the conference that he was pessimistic about the prospects of passage of federal Internet gaming legislation. He said lawmakers had yet to prove they could get beyond political differences and reach consensus on on any significant legislation. Porter said because the need for tax revenue was so great and the federal government faced the prospect of automatic program cuts if some form of tax legislation weren't approved, politicians would find the political will to approve an obvious source of revenue, the taxation of online poker play. But he added that industry leaders needed to lobby their positions and stay vocal to pressure lawmakers. "It's not going to happen if you're waiting for Caesars or state lotteries of the Poker Players Alliance to carry the ball," said Porter, who added that a consistent message from the industry could move legislation forward. "Sometimes the industry is its own worst enemy." He also said he wouldn't be surprised if Internet gambling legislation was attached to some other critical bill late in the session, a strategy that worked in the passage of the Unlawful Internet Gambling Enforcement Act. That bill was attached to the so-called SAFE Port Act. Porter said he thought Sen. Jon Kyl, R-Ariz., one of the leading opponents of Internet gambling, could be softening his position. But others attending the conference said they believed Kyl would only support a bill that would provide a benefit to his state's tribal casinos. California's tribal casinos also are positioning themselves for the possibility the legalization of Internet gaming.