Nevada Proposes Bill For Online Gambling Compacts

Published Tuesday, January 08, 2013 -

According to a press release submitted by a law news web site the Nevada General Assembly, has introduced a bill on behalf of the state’s State Gaming Control Board that would allow for the state governor to enter into interstate gaming compacts with other states.

Assembly Bill 5, would remove language in the previously enacted online gaming bill that stated that an online gaming license does not become effective until a federal law was passed authorizing online gaming or the U.S. Department of Justice provided notice that interactive gaming activities are permissible under federal law. The bill would add language that allows for the governor, on behalf of the state, to enter into agreements with other states. This is a new twist that has online gambling operators ready to rumble. The opinion of the Department of Justice on the Wire Act of 1961 confirming that it applied only to sports betting has opened the door to such legislation.

The only issue that the prospect of interstate gaming compacts creates is the potential for a lot of different laws and regulations for players and operators. Nevada is the only state to implement regulations for online poker and only Delaware and possibly New Jersey have online gambling regulations passed or pending. Less experienced states may call on these jurisdictions to create their own set of rules. Liquidity is an issue for poker rooms that operate in only one state, something that a compact could resolve by sharing player activity. Depending on constitutional and legal arrangements in different states of the union a state may be able to participate in gaming compacts without any legislative action.

Recommendation of this sort of legislation giving one state huge control over online gambling will require a leap in faith for law makers who know full well how complicated a proposal such as this can become. It may take a long time before all the details are ironed out.

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