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    • MGM CEO James Murray Says 2012 Will Be The Year Online Poker Returns



    If there's anyone who should know about the likelihood of online poker and online casino gaming returning to the United States, it's James Murren. The MGM CEO has already formed a strategic alliance with Bwin.Party to ensure that they have a stake in the new market once the legislation is passed.


    So why is Murren so confidant that online gaming will soon be legal? It relates partly to a decision made by the U.S. Department of Justice which clarifies the confusion surrounding the 1961 Wire Act. The DoJ have stated that the Act applies only to sports betting and not to online poker. This is important because it appears to give online poker providers the opportunity to operate intra-state websites without federal approval. The DoJ decision may even mean states could link together to offer inter-state gaming. Local state licensing would still be needed but Nevada is already accepting applications from prospective providers.


    James Murren

    MGM CEO James Murren

    While this is good news for poker players, it's worth taking a step back to discuss whether it would still be preferable for online gaming to be legalised at a federal level. The obvious answer is 'yes'. The Poker Players Alliance (PPA) and the American Gaming Association (AGA) are certainly of that opinion; the PPA's concerns centre on the possibility of a range of differing licensing authorities offering players different levels of consumer protection. The AGA's concerns are for the possibility of unlicensed websites operating in certain states with impunity.


    The PPA is also concerned about a lack of revenue and liquidity if sites can only attract players from within their state borders. This may cause cashflow problems for smaller operators, leading to another 'Full Tilt Poker' disaster. Once the big bricks and mortar casino operators such as MGM get involved, a critical mass of support seems almost inevitable and this may prompt the federal authorities to redouble their efforts to pass some legislation at a federal level. After all, if it's going to happen anyway, it's better to regulate from the top and from the beginning.


    A subnote to this story is the confidence some agitators now have to criticise the hated 2006 UIGEA. If the Wire Act is vague and unclear, they argue, then so is the UIGEA and perhaps there's an argument for the DoJ to look again at the misguided piece of law that instantly criminalised millions of people.


    Not all Vegas casinos are happy with the move towards online gaming though; Sheldon Adelson of Las Vegas Sands is not a supporter, ostensibly because he has concerns about underage people gambling. Frankly it's more likely that he has realised he is falling behind in the race to prepare for online poker against his Las Vegas competitors and needs more time to get organised. Whatever, Adelson is now clearly in the minority and hopefully 2012 will be the year.




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