HUGE news-- NORTH DAKOTA to regulate online gambling?

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Article cortesy of Majorwager........

Online poker? You bet

By Janell Cole, The Forum
Published Thursday, February 17, 2005

BISMARCK -- After glowing speeches about its potential for economic development, jobs and unique opportunities, the House voted Wednesday to have the state become a national headquarters for companies that host worldwide live Internet poker.

Rep. Bill Kretschmar, R-Venturia, said North Dakota would offer to regulate the industry here, collecting taxes and fees for its general fund in the process.

"It's like 'If you build it they will come,' " he said. No companies operate in the U.S. now, he said. They are in the Caribbean or other foreign countries.

Rep. Jim Kasper, R-Fargo, is the prime sponsor of House Bill 1509 and said the state could enjoy tremendous revenue from licensing and regulating the industry.

"This industry is growing at about 10 percent per month. No single state has passed legislation like this. We would be the first to do that," he said. "So the market is tremendous and as you know, the first one out of the chute generally has a pretty good opportunity to capture that marketplace."

He said that because the Internet sites are already there, "This is not an expansion of gaming whatsoever."

He said if the state licenses 200 poker sites, it could take in $40 million. There are 50 million Internet poker players in the country now and 300 million worldwide. If the state licensed 50 million players, "That's 500 million dollars per year new revenue to North Dakota."

Another sponsor, Rep. Ron Iverson, R-Fargo, said, "This is a rare opportunity for us to be first out of the gate here. The reason other states aren't doing this is they don't have the foresight. This is our time. This is our time to seize this opportunity."

Rep. Lawrence Klemin, R-Fargo, said he doesn't think companies would bring jobs here. It's more likely the company would bring a 4-foot-by-4-foot computer server, he said.

The bill passed 49-43.

The House vote comes less than two weeks after North Dakota's horse betting industry scandal culminated in conviction of Racing Services Inc. and owner Susan Bala on a dozen federal charges related to a clandestine, illegal off-track betting parlor.

In RSI's case, Bala made her company and North Dakota a national and international leader in simulcast horse race wagering. Until news of state and federal investigations surfaced in 2003, she had lured gamblers who bet as much as $160 million a year through RSI and the state reaped a windfall that has now dried up.

The bill is an "enabling act' that would only go into effect if the Legislature and the state's voters approve a constitutional amendment to allow the industry.

The bill now goes to the Senate.
 

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Gee, someone finally realizing how much money is going out the window.


"This industry is growing at about 10 percent per month. No single state has passed legislation like this. We would be the first to do that," he said. "So the market is tremendous and as you know, the first one out of the chute generally has a pretty good opportunity to capture that marketplace."
 

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There are 50 million Internet poker players in the country now.


There is?

That figure seems extremely high to me.

Can anyone provide evidence that this is true?

50 million?

Wow!

---FISH---
 

FreeRyanFerguson.com
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Isn't that about 1 in 5 people in this country? That does seem high. I like that! Hopefully, this will be the first of many steps that will eventually include being able to bet on the Illini at Kroger while I buy milk.
 

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im telling you THIS could be the SPARK...be optimistic...other states might follow
 

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My question is this.

If regulated, where does the state get the money from?

The offshore pokerrooms I am assumming, right?

Will the players have to pay a PRIVLIDGE tax of some kind?

---FISH---
 

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Fishhead said:
My question is this.

If regulated, where does the state get the money from?

The offshore pokerrooms I am assumming, right?

Will the players have to pay a PRIVLIDGE tax of some kind?

---FISH---
I would not care if the player had to pay a tax out of each winning pot a "RAKE FOR the GOV" so to speak just REGULATE the DAMN THING!!:smoker2:
 

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Dante said:
I would not care if the player had to pay a tax out of each winning pot a "RAKE FOR the GOV" so to speak just REGULATE the DAMN THING!!:smoker2:


Good point!

---FISH---
 

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Thank the Hockey strike for all of this...


Espn 2 being forced to air the WSOP constantly has caused a new era poker rage .
 

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The poker craze is certainly a boost to online gambling overall.

"Poker revenue is expected to double to more than $2 billion in the next year and attract 1 million new players a month."

---FISH---
 

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I have a hard time believing it would be just that easy. Other states won't be happy about it and could go to the lengths of banning online poker play by anyone in their state. Feds might even say something about it. Sort of the same reasoning as to why Nevada sports books can only take action from within Nevada.
 

International Playa
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50 million online poker players in this country? i doubt it.
 

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WildBill said:
I have a hard time believing it would be just that easy. Other states won't be happy about it and could go to the lengths of banning online poker play by anyone in their state. Feds might even say something about it. Sort of the same reasoning as to why Nevada sports books can only take action from within Nevada.
Bill one thing you are NOT is optimistic Sir ;)
 

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I am not saying this isn't a good thing, I am just saying don't expect the law to pass and then on the day it is enabled that all 50 states will have free and unfettered online poker play with nothing to worry about. The other states are going to get pissed. They might claim it is because they don't like gambling and think it will start gambling problems, but lets be real here. They won't like it because North Dakota will be getting all the tax dollars.

The reason I say this is think about our situation now? We have no problems playing poker online, people from all 50 states are already doing it. There might not be a fully legal situation around it, but the effect is all that really matters. They haven't prosecuted Moneymaker, Williams, or Raymer...guys who won millions as a result of playing online and living in states that aren't exactly offshore friendly. Now if you let a US state get involved and they start making money and not sharing, look out. That could start something. Its rocking the boat when it really doesn't do us much good.

Unless we get a clear national mandate with a path to legalization and regulation I will maintain these one-off states could start trouble. In some cases the one-off states would be good trouble because they will fight the battles that need to be fought, such as my argument about how Minnesota would be a good battle to win for sports betting. North Dakota has no such benefit.
 

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Fishhead said:
My question is this.

If regulated, where does the state get the money from?

The offshore pokerrooms I am assumming, right?

Will the players have to pay a PRIVLIDGE tax of some kind?

The answer is in the article you posted:

"He said if the state licenses 200 poker sites, it could take in $40 million. There are 50 million Internet poker players in the country now and 300 million worldwide. If the state licensed 50 million players, "That's 500 million dollars per year new revenue to North Dakota."

Therefore, annual license for a poker site $200,000 and annual license for a poker player $10.

I'm with WildBill about this stirring up a can of worms. What I also can't figure out is why would a site move to N. Dakota? If it ain't broke don't fix it. It seems this needs Federal regulation to be meaningful.
 

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never will happen.cant verify age of gamblers is the #1 stumbling block and that alone will be enough for any group against online gambling to hold it up in court.
 

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What could this do for sports betting in the future?
 

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miked429 said:
never will happen.cant verify age of gamblers is the #1 stumbling block and that alone will be enough for any group against online gambling to hold it up in court.

Not a problem. Age verification by driver's license is very common.
 

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woody a driver license is not a valid age verification when a minor can use a computer using his fathers license.in a casino a 15 year old kid cant use his father license unless he looks 45.
 

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