Internet Gaming and the Indian Tribes

Internet Gaming and the Tribes

I had written earlier this year about the Justice Department opining that Internet Gaming per se is not in violation of Federal Law.  I have not been reporting it closely because New York has, as yet, not shown any real interest.  However, with Congress crawling towards national regulation of on line gaming, the Indian Tribes want to ensure that they get their piece of the action.  Now, this will impact New York as certainly the Oneidas and the Senecas and possibly the Mohawks have the resources,  interest and experience to jump into this ring.

As it stands, New York State will not be entitled to a piece of anything the Tribes garner if they venture into this market.

So now, I will try and keep you updated.

And now the news:

Since a December 2011 Department of Justice opinion that not all Internet gambling is banned by federal law, Delaware has legalized online gambling and Nevada is closing in on making online poker possible. New Jersey, too, is working to make it a reality.

With some states readying to start online gambling, Native American tribal leaders are calling on the federal government to step in as it did with brick-and-mortar gambling and establish regulations that ensure tribes get a piece of the action without having their revenue taxed and their sovereignty compromised.

http://abcnews.go.com/Technology/wireStory/tribes-federal-regulation-internet-gaming-16865932

Indian Affairs Chairman Daniel Akaka, D-Hawaii, has released a draft bill that would outline rules for allowing online gambling by Indian tribes. Like other measures that have been introduced, the Tribal Online Gaming Act would only authorize online poker. Supporters say unlike other forms of Internet gambling, online poker is a game of skill and less susceptible to manipulation.

The Senate Indian Affairs Committee examined how proposals that call for legalizing online poker might impact the current gaming operations offered by Indian tribes. Senate Majority Leader Harry Reid, D-Nev., and Minority Whip Jon Kyl, R-Ariz., are currently in negotiations on developing a proposal that would legalize online poker in exchange for tightening restrictions on other forms of Internet gambling.

http://techdailydose.nationaljournal.com/2012/07/tribes-want-input-on-net-gambl.php

New Jersey

Just as New York appears closer to legalizing gambling, New Jersey Governor Chris Christie is blocking attempts to expand his state’s gambling options beyond Atlantic City, according to Bloomberg News.


After Pennsylvania legalized slots in 2006 and table games in 2010, it began usurping gambling revenue from Atlantic City. In fact, revenue for boardwalk casinos has fallen 37 percent since 2006, to $3.3 billion last year. And with more competition likely to arrive from New York, lawmakers want to amend the state constitution to allow casinos near the Meadowlands, closer to Manhattan.
 But Christie said he wouldn’t back expansion until he knows for certain he can’t turn around Atlantic City. “Atlantic City deserves to have five years to try and get itself revitalized and back on its feet,” Christie has said. He’s working to encourage development in the area, and already gave a $261 million tax break towards the development of the boardwalk’s first new casino in a decade, the Revel.


Newmark Grubb Knight Frank Chairman Jeffrey Gural is pushing Christie to reduce his time frame. He owns the Meadowlands racetrack and wants to develop a casino on the site, which he said could net the state $350 million a year, depending on how it taxes that revenue. Most importantly, analysts say, it would help stop some of the cash-strapped state’s potential gaming revenue from trickling across state lines.

http://therealdeal.com/blog/2012/07/26/gov-christie-opposes-gambling-expansion-to-protect-atlantic-city/