HomePublicationsNewsletter ArchiveNewslettersVolume 18Issue 31Panel Provides Insight on Future of iGaming Regulation

On Monday, October 1, 2012, the G2E held a session on the future of online gaming regulation. The panel discussion was led by AGA President and CEO Frank Fahrenkopf, Jr. who noted that although “[w]e have to be lucky to have online gaming this year,” the prospects of legalized online gaming in the United States is real and “it is not if, its when.”

Panel members included a diverse mix of domestic and foreign online gaming regulation experts including D. Brett Hale, Senior Vice President of Corporate and Government Relations for Churchill Downs, Inc.; James Kilsby, Americas Editor for Gambling Compliance; Alen Lang, Director of Development with bwin.party digital entertainment; and Mark Lipparelli, former Member of the Nevada Gaming Control Board.

Mr. Kilsby noted that Nevada and Delaware are the key jurisdictions for the industry to watch in the United States, along with New Jersey which passed a law that was vetoed by Governor Christie  that would have allowed existing casinos to operate online wagering sites. Mr. Kilsby also noted California, Iowa, Illinois, Massachusetts, Michigan, and Hawaii as states that may introduce legislation on the issue in the near future.

Mr. Lipparelli then summarized the current state of online gambling regulation in Nevada, which recently put forth new rules allowing for online gaming licenses to be issued by the Nevada Gaming Control Board. Thus far, around thirty online gaming applications have been submitted and the board expects a steady stream of new applications over the next six months. Mr. Lipparelli also noted new challenges from a regulatory perspective, noting that internal controls, technical issues, audit requirements, and dispute resolution procedures will all require a new method of thinking about gaming regulation in a digital space.

Mr. Lang, whose company operates one of the largest online gaming sites in Europe, stated that it would be difficult for existing foreign operators to obtain licensure for online gaming in the United States as the current regulatory trend is to only allow existing, land-based operators to operate online wagering sites. Because of this, Mr. Lang anticipates that many European companies will partner with domestic operators when more jurisdictions authorize forms of online gaming.

Mr. Hale provided the unique perspective of the horse racing industry, which has operated online since 2001. Mr. Hale stated that horse racing generates approximately $800 Million in wagers per year online under existing regulatory structures. He further noted that any expansion of online gaming at the state level will likely generate some form of litigation from tribal interests.

Overall, the panel was confident that online gaming opportunities would continue to expand in the near future, however, the specific path for legalization and regulation is unclear.

 

Upcoming Events

Casino Job Board

Official Publications

 

RMC Legal

Visit our other website below: