Colorado is likely to have a bill on online poker passed very soon. There has been much lobbying in this regard, and poker lovers in Colorado are hopeful that online poker will soon be legalized. In a number of US states, the poker law is not explicit especially regarding online poker. That means that betting enthusiasts are unable to foretell if and when they are crossing the line in regard to the state poker law. Colorado has around forty casinos, and a good number of them provide poker rooms. Needless to say, casino owners will be among the happiest people when the Colorado Gaming Commission succeeds in getting the law on state online poker passed.
Debate on Pros and Cons of Online Poker
For close to five years now, interest regarding online poker has been rising in Colorado. With equal measure are the concerns about what online poker may do to the conventional arena of poker. First on the list of concerns is the possibility of revenues from brick and mortar casinos dropping when some old patrons turn to online poker. The debate about online poker began to gain volume around 2011 when the Colorado Gaming Association released a report on a study they had commissioned dwelling on the prospects of online gambling and its effects on the existing Colorado casinos.
Colorado legislatures took the debate on online poker seriously, and in 2012 they initiated a bill that was meant to lead to legalization of online poker in the state. Colorado state laws have not addressed the issue of online gambling before, and that leaves poker players as well as their fans wondering where the state stands with regard to online gambling. It will be a great relief when ultimately the poker law is enacted and particularly addressing the state online poker law. As owners of brick and mortar casinos fear, failure to address the topic of online poker with a view to regulating it is likely to jeopardize commercial activity in the industry.
State Revenues from Gambling
Currently, the state of Colorado gets a whopping $750 million annually in annual revenues from casinos. If the online poker bill draft is passed into law as is anticipated, the state will, very likely, reap more revenues from the gambling sector. One pertinent point is that the brick and mortar casinos and hosts of online poker need not be mutually exclusive in terms of ownership. In fact, owners of current casinos may wish to participate in hosting online poker as well as long as they understand the infrastructure and the legalities involved. They may also wish to spread their tentacles to neighboring states. That would make it easy and convenient for the state of Colorado to gather revenues from a much bigger number of gambling centers. These are great prospects for the state as far as budgetary issues are concerned.
Colorado Has Not Been Enthusiastic In The Past
It is tempting to think that the state of Colorado has been enthusiastic about gambling considering that 40 is not necessarily a small figure when it comes to number of casinos in the state. However, that is not the case. Granted playing poker is legal in Colorado; but the ceiling for betting amounts is quite low – $100. That might come as a surprise to people who are familiar with the gambling that takes place in Las Vegas casinos and such other vibrant casinos. And even this $100 is an improvement. Before 2009, a gambler could only bet $5 and below at any one time.
However, Colorado can no longer afford to ignore the need to liberalize poker a bit more. The fact that New Jersey and other states like Nevada have embraced online poker is itself enough pressure for Colorado.
Billionaire CEO of publicly traded Wynn Resorts Limited addressed his management team in a conference call last week during a discussion on the company’s earnings for the third quarter of 2015. Normally, management would be upbeat reviewing revenues from poker and other gaming activities, but this year is different. Revenues are significantly down.
Wynn’s Bone Of Contention
In his opening remarks, Steve Wynn sharply criticized Macau’s current policies on allocation of gambling tables in casinos. Apparently, the state poker law has changed; or even laws regarding gambling in general. However, this change in state laws and related gambling regulations has not been spelt out clearly. But considering what has been happening recently, casinos in Macau can no longer base their number of poker tables on their capacity. The state has begun to put a cap on the number of gaming tables a casino can hold. This is evident from what happened recently to two casinos, Galaxy and Studio City, who only came to know of their limited number of game tables weeks to casino opening. Needless to say, new information on such short notice disorganizes an investor in more ways than one, including the aspect of human resource.
What generally came out of Wynn’s speech was that currently there is lack of clarity and a lot of uncertainty regarding the regulation of casino operations within this Chinese peninsula, and that it is bound to affect business in an adverse manner. Wynn knows all about poker revenues and income from betting games in general and their impact on Macau’s economy.
He opened his first casino in Macau in 2006, offering poker and other related games, and now he predicts that the new regulations will have a negative impact on the workforce within the industry as well as on other stakeholders like the junket operators. He observes that a good number of junket operators have already closed shop and the future for many others is uncertain.
Macau Casino Business Changing For the Worse
With the atmosphere as it is, Wynn warns that there is need to review the credit terms extended to stakeholders in order to safeguard business. Obviously, whether business is based on online gambling or gambling within brick and mortar casinos, inability to plan ahead is unsettling; the reason Wynn feels Wynn Resorts cannot go on advancing chips to the junket operators on the same terms as before.
Online poker; poker within ordinary casinos; and other betting activities, have continued in Macau for decades without a hitch. This city has actually been seen as China’s Las Vegas for its many casinos and vibrant gambling activity. However, it appears that this position may gradually change as revenue from poker and other betting games has been falling consistently for the last 16mths. This year to-date, revenues earned from gaming in Macau has fallen a whole 36% compared to last year’s same period.
Wynn Resorts Not Giving Up
Despite the disappointment in the way casino regulation is developing in Macau, Wynn Resorts is still ready to open its newest casino in the region come March. The casino, to be known as Wynn Palace, is set to open on 25th March 2016. And whether the limitation on tables for poker and other betting games continues or not, this luxurious integrated resort is going to make a mark in the region.
It is a $4 billion investment that has ample gaming space; meeting facilities; and all other amenities associated with a top of the range resort. Accommodation goes up to 1700 rooms and the place has a performance lake to boot. Evidently, there is more to look forward to at Wynn Palace beyond poker, online gambling and betting in general.
In poker news, daily fantasy sports firm, Draftkings today announced that it will cut ties with World Series of poker due to the increasing scrutiny of fantasy sports with lawmakers claiming that the sport is unregulated and should be in turn considered as gambling. The fantasy sports company has held a prominent presence in the poker world series advertising realm and has even organized exclusive world series poker events that has seen contestants win free entries into the much anticipated final worldwide poker tournament.
However, of late, the daily fantasy sport industry has been under heavy scrutiny by the gaming regulators and law enforcement officials and it is for this reason that Draftkings is opting to end its partnership with poker world series. In the United States poker is highly regulated and even considered as gambling and maintaining its ties with the sport will tarnish Draftkings brand.
In the past week, Nevada Gaming Control Board issued out a ruling saying that all fantasy sports should be regarded as gambling. This gaming board proceeded to order daily fantasy sports companies FanDuel and Draftkings to shut down their websites and any operations held within Nevada until the firms together with their employees receive certified gambling licenses from the state.
World Series of poker spokesperson, Seth Palansky had this to say about the news, “In light of last week’s news in Nevada, Draftkings asked us to cease any sponsorship activities around the remaining few W.S.O.P events of the year and we complied.”
In fantasy sports, players are allowed to create their own teams of athletes in the online sport and even bet on them. However, gaming regulators are increasing their opposition against online fantasy betting. This is has been the case especially after the fantasy gaming sport companies started offering regular competitions with million dollar prizes up for grabs plus other sports that are closely affiliated with gambling.
In light of Nevada Gaming Control Board ruling last week, Draftkings announced on Thursday that it would no longer offer its contestants free entries to the world poker tournament. Famed fantasy sports player, Max Steinberg, who is one of the nine skilled poker players who will battle it out for the $7.68 million dollar prize at next month’s final poker tournament, got his entry into the event through the Draftkings league at a small entry fee charge of $27. While Steinberg has rocked the firm’s logo since his entry into the world poker tournament, the recent ruling and legal woes faced by the firm has put tensions on their partnership and even broken off their ties.
“This is the result of daily fantasy sports no longer being authorized in Nevada,” said Sabrina Macias, Draftkings spokeswoman.
Draftkings made history as TV’s leading advertiser when it run an advertisement every minute and a half in the few days leading up to the start of the NFL season, reported Isport.tv, a tech firm that tracks all trends in TV advertising. It was after this incidence that the fantasy sporting industry fell under heavy scrutiny with gaming regulators investigating the firm’s employees to see whether they had a role in procuring insider information and possibly exploiting clueless clients.
Daily fantasy sports companies FanDuel and Draftkings which are each valued to be worth over $1billion dollars have since their exception operated under an immunity clause to the Unlawful Internet Gambling Enforcement Act of 2006, a law that prohibited sports betting and online poker. So far, five states have joined in the Nevada gambling board’s bandwagon but none of course as influential as Nevada itself which has a big stronghold on legal gambling and is the country’s only state that allows sport’s betting.
In recent poker news, Raiders have come up as the biggest players in the poker machine business having purchased 60 out of 80 pokies that have been traded since September that marked the commencement of the government scheme.
However, under the ACT government scheme, 15 out of the 60 poker machines must be relinquished which leaves 45 poker machines adding to Raiders already 481. This has propelled the Raiders into position third in the new poker machine market, first being Tuggeranong Rugby Union Club with 704 new poker machines and Southern Cross Club which has 680 new poker machines. Raiders come in third and are now followed by Canberra Labor Club with 488 machines.
According to Access Canberra, the Raiders have already distributed the new machines across their various club locations including; Gungahlin with 18 machines, Belconnen with 15 and Weston with 12 machines. Raiders are only one of two clubs to invest in new machines since the scheme that started in September. Mawson Club is the other club in the new poker machine market having bought 20 machines and forced to forfeit five of them.
Of note is that there is only one seller in the new poker machine business namely, Tradesmen Union Club which is also associated with the energy and construction forestry mining industry. The Tradesmen have managed to sell 20 poker machines from their Woden branch and 60 from Dickson branch. This has reduced their stock from 540 machines to 460.
Tradesmen Union Club chief executive Rib Docker, refused to discuss the machine sales saying they are confidential. However, he did note that the new market was oversupplied with machines since the scheme started and he is very much looking forward to having 300 new poker machines stocked at the union’s store branches as opposed to 400. He asserted that the union was not actively trying to get rid of the new poker machines at the moment; however, they are open to ideas on how they can improve sales.
The ACT Government scheme which was set in September now allows various clubs to buy and sell new poker machines. This scheme was set up with the aim of reducing poker machines in circulation and in turn lowers the gambling numbers. It also aims at reducing overall numbers of poker machines with clubs being required to forfeit 1 in every four of their licensed machines. Another goal targeted by the scheme is to pave way for clubs and pubs to sell their old traditional poker machines which are then converted into more efficient and modern ones. However, no clubs or pubs have been noted to date as having sold their old poker machines.
This new trading scheme also aims to protect business owners from the outcomes of the new cap that is set to come to fruition in about 3 years. This new cap stipulates clubs to have 15 poker machines serving 1000 adults. Should this cap take effect, the government estimates that there will be a total of 4785 poker machines by the year 2018.
To assist clubs and pubs keep up with the new scheme, the government has allowed them to store any unused or old machines in storage. In the past, poker machines that were not being used were immediately forfeited. As of now, three clubs have already put up 29 machines in storage for one year while 118 poker machines are being stored for 1-3 years. The Raiders have put 18 poker machines in storage which could indicate a strategic move on their part to ensure business flexibility when the new cap takes effect in a few years.
Whereas veterans are respected in the field of poker and experienced players usually have an upper hand, performances in major poker tournaments have proven that youth is not necessarily a disadvantage. Joe McKeehen is a good example that whether playing within brick and mortar casinos or playing online poker, it is possible to make big winnings despite being young. Last July, McKeehen won a whopping 63.1 million worth of chips, an amount exceeding twice what his closest rival poker competitor, Zvi Stern, won. He is only 24yrs old.
Mckeehen Beats Daniel Negreau in WSOP
This month, this young poker player from Pennsylvania has upset the World Series of Poker Championship (WSOP) Championship by beating the favorite, Daniel Negreanu. Print media showed Negreau lying on the floor with both hands on his face in shock after finishing 11th place. This is the 2nd time Negreau who is a favorite of many in the gaming arena has fallen this low. He had a similarly poor show in 2001.
Even Poker Provides Discipline
It is said that sports help to develop discipline, but some people may not be so sure about that when it comes to betting games like poker. However, the reaction of the two poker competitors, Daniel Negreanu and Joe McKeehen, after this month’s WSOP championship affirm that even poker instills discipline in players. While Negreau was shocked at being beaten by McKeehen, and surprised too at coming eleventh, he accepted defeat without excuses. He even joked that the experience was nothing he could not handle with some vodka. As for McKeehen, he admitted that at some point when playing against Negreau, he was star struck.
Was McKeehen ever a favorite?
Actually, although McKeehen has been gradually rising as a serious contender in poker tournaments, many people did not expect him to beat poker players like Negreanu with a big margin. McKeehen’s first big cash came in 2010 when he was only 19yrs of age. Of course, people in the world poker arena who had not taken the young poker player seriously before took notice of him then. After that came the live tournament in New York’s Turning Stone Casino and McKeehen got more limelight as a formidable competitor.
In betting games, including online poker and gaming activities in casinos, what makes a player a favorite amongst fans is how consistently they win games. Alternatively, a player can become a favorite if they continue to give other competitors a run for their money. For McKeehen, what has endeared him to poker fans in the course of time is the regularity with which he has continued to qualify for the finals. He even had a chance to play in Florida, as a side trip, at the Florida State Poker Championship at Pompano Beach. In 2012, Joe McKeehen won a Turbo event at the PokerStars Caribbean Adventure and pocketed $2,000, and then pocketed a further $10,000 in the Six Max High Roller event after finishing in the tenth position. And, of course, between now and that time, he has won other mini prizes.
Before his July win this year, the biggest cash amount McKeehen had won was $820,863. That is the time he played at theMonster Stack and came 2nd, just behind Hugo Pingray. The poker fraternity will, definitely, be keenly following McKeehen’s performance come November Nine. Even when state laws on gambling in some places seem to be restricting and sometimes ambiguous, entry of young players in competitive poker is a positive sign that the game of poker is still popular. And, of course, the fact that most states allowing online gambling welcome poker players from neighboring states as well is a positive factor too.
