Legalized Online Poker Draws Closer

Although little progress has been visible on federal legislation to legalize online gambling, Nevada and Delaware are moving quickly toward launching in-state interactive gambling sites.  In-state operations became feasible after the U.S. Department of Justice issued an opinion last December that the federal Wire Act, 18 U.S.C. § 1084, does not reach Internet gambling other than sports betting.  Additionally, federal prosecutions of offshore operators of online poker sites have substantially reduced the number of those sites that are willing to take play from United States residents.

Nevada has issued more than a dozen licenses for online poker operators, including some to gaming equipment giants IGT, Bally Technologies, and WMS Gaming, and casino operators like Boyd Gaming, MGM Resorts, Station Casinos, and the Golden Nugget.  The online company expected to launch its Nevada-only website first is South Point Poker LLC.

In June, the Delaware Legislature authorized all forms of online gambling, including online slots, casino table games, keno, and football sports parlays.  The Delaware Lottery Office is scheduled to issue regulations by January 2013.