The Commerce Casino in California, the largest poker room in the U.S., and a mecca for west coast poker enthusiasts, recently stated its opposition to H.R. 2267, Rep. Barney Frank’s legislation that would legalize and regulate online poker.  I have two main reactions to this stance.  First, a business has every right to, in fact is designed to, do what is in its best economic interest.  Second, opposing the legislation is short-sighted.

I’m assuming that the Commerce Casino stance is premised on a belief that more people playing online will mean fewer people in its establishment.  Which translates to less rake and concessions.  In other words, less revenue.  If this was true, the Commerce’s position would be correct.  But I do not believe it to be true.  Legalizing online poker will expand the pie.  Its tide will rise all boats.  Or whatever metaphor you prefer.  Legalization likely will result in more people interested in and playing poker than are now.  Initially, most of these new players will be online — that is the intention of the law after all.  But as we all know, even the staunchest of online poker advocates dabble in live poker from time to time.  So, if more people are playing poker online, it stands to reason that eventually (and probably soon) there should be an increase in live players as well.  Being the largest poker room in the country, and in California to boot, the Commerce should receive a significant portion of the increased action.  To vote against legalizing online poker is myopic. 

It is myopic for another reason.  Commerce regulars are revolting against the casino’s stance and threatening to boycott the poker room.  Apparently, live poker players enjoy online poker as well (who knew!).  Or at least commiserate with their online compatriots.  The Commerce’s stance is costing it business even before online poker is legalized.

Poker is one community.  Regardless of whether you prefer online or live.  It’s similar to how Democrats and Republicans are all Americans.  Our similarities are greater than our differences.  Poker has been under attack for some time.  All poker players should stand united.  Doing so will help all.  (I mean, can you just imagine the influx of fresh meat for the Commerce Casino sharks?  It might be like 2003-05 –the Golden Age — all over again.)

**FYI — I will be on vacation next week.  I’ll try to post while away, but do not yet know if I will have internet access.  If I don’t, I will post soon after my return as I know you will be chomping at the bit.  Have a great Labor Day!

Be careful what you wish for I suppose.  NJ had been on the fast track toward legalized intrastate online poker.  That was, until, the federal government got a bill out of committee and the NJ Governor announced the state’s intention to overhaul Atlantic City.  All this has caused the push to legalize online poker in NJ to stall somewhat.   What was once though to be a given to happen by the end of the year is no longer being given such short odds.  Which is not to say that the measure is dead in the water.  To the contrary, unlike in California and other states, both houses of the NJ legislature support legalization.  So it looks like the legislation ultimately will pass, but when is now more uncertain.  Then again, if the federal government repeals the UIGEA (either directly or in effect), all this will be for naught and poker will reign supreme in all states.

The U.S. Government has just settled with two online payment processors and their owner for $13.3 million.  This is the final resolution of seizures that occurred back in June 2009.  Will these parties have the distinction of being the last to forfeit money before the U.S. changes its laws….?

As promised, here’s the link to the panel discussion on online poker law.  (It’s actually a link to the Cardrunners page from which you can listen or download it, for all you poker playing lawyers on the go.)  I’m not putting it up there with season one of Mad Men just yet, but it is quite interesting and controversial (at least to many Congresspeople).

Just a heads up that tomorrow Cardrunners will be hosting a round table discussion of online poker law, and other topics.  The expected participants aregaming expert Professor Joe Kelly, Rich Muny, Matt Matros, and Pawel Nazarewicz.   I’ll try to post the link.  But if you’re desperate to get it before I upload the link, head on over to Cardrunners.   Enjoy!

The NFL had been a staunch opponent of Rep. Frank’s legislation that would regulate/legalize online poker.  No more.  As a result of Rep. Frank amending his legislation to prohibit sports betting, the NFL has decided to withdraw its opposition.  Do not underestimate the effect of this development.  The NFL is a powerful voice on the Hill, with its tentacles in many powerful lobbies (TV, for one) and many Congresspeople concerned about drawing the league’s ire.  Sports bettor may not be rejoicing, but poker players surely are.

Foxwoods is in a battle with its beverage workers, who voted to unionize.  Foxwoods objects to the move, claiming that tribal law, and not U.S. federal law, governs.  Aside from general societal awareness, this story may appeal to poker players for two reasons:  first, the increased labor costs that typically result from unionization may be passed on to players in the form of a higher rake, and second, the irony, as Foxwoods poker room servers are notoriously slow.  Do I foresee a move to Mohegan Sun….?

Harrah’s is engaging in a massive PR campaign to publicize its free poker site.  But get this, the site is run by Dragonfish, which operates a real-money site in the UK.  This move comes hot on the heels of the positive House Committee vote on Rep. Frank’s bill to legalize/regulate online poker, the momentum gained since with additional Congresspeople voicing their support of the bill, and rumors that any bill that legalizes online poker will explicitly outlaw any site that operated in violation of U.S. law (i.e., FullTilt, PokerStars, and even possibly PartyPoker — a great comment to an earlier post by me notes that Party admitted guilt a while back to avoid serious sanctions).  Looks like Harrah’s is using the period before (crossing fingers) legalization to fine-tune its software and build a fan base.  They even soon will offer prizes, such as main event entries.  It may not be “gambling” — you are not putting up your on money — but it is mighty enticing.  Anyway, if I’m FTP, PS, or Party, I would be getting a wee bit nervous.  Harrah’s is a major casino player with a strong lobbying influence.  This shot over the bow is one that should be heeded.  How though, is an entirely different question.

Check out these restrictive policies for online poker in Bulgaria.  No advertising and operators must have an office in all 28 of Bulgaria’s provinces.  What!?!?!?  Not that I’ve seriously contemplated moving to Bulgaria, but this kind of seals the deal.

Many a young poker player (and some not so old at this point), cut their teeth on PartyPoker.  The golden days if you will.  These same players were devastated when PartyPoker decided to pull out of the U.S. market in the wake of the passage of the UIGEA.  In came FullTilt and PokerStars, primarily.  The games were not he same, but still a nice alternative.  FTP and PS made a reputed windfall at PartyPoker’s expense.  They won the short-term.  But the recent legislative push in the U.S. appears to be moving toward prohibiting licensing sites that violated the UIGEA.  Read: FTP and PS will be prohibited from operating while PokerStars (and other sites not currently operating in the U.S.) could be licensed.  Assuming this path is the one that ultimately is approved by Congress, PartyPoker (primed with its recent merger with Bwin) is on the precipice of another fortune.  Basically, a monopoly in the U.S. until other sites catch up (or FTP and PS reorganize under other names).  As any good poker player knows, you should view poker as one long session.  All that matters is good decisions and winning in the end.  PartyPoker is teaching this to poker players on a mega scale.  PartyPoker made what could be the best decision of them all (a strategic withdrawal from the U.S. for many years) to secure the long-term win (getting licensed and profiting indefinitely, and legally).  Poker players take note.  “Instant” gratification is fleeting.