month in minutes >
Q&A
Frank Fahrenkopf
> President and CEO of the American Gaming Association (AGA) eGR: What do the majority of AGA members favour and why? FF: The AGA supports federal legislation that will establish a strict regulatory framework of minimum standards for state-based licensing and enforcement of online gambling in jurisdictions that choose to accept it. In order to be most effective, such legislation should modernise and strengthen the Wire Act of 1961 with conforming amendments to the Unlawful Internet Gambling Enforcement Act that would unambiguously eliminate illegal internet gambling. Legislation must establish federal guidelines so there will be consistent regulations for online gambling in all states that choose to authorise it. Any legislative proposal supported by the AGA must allow states to choose whether to legalise online gambling within its borders and to license and regulate the activity should they choose to do so. It must create a level playing ?eld so all segments of the industry have a fair opportunity to participate. eGR: What are your thoughts on moving beyond online poker, and how long do you think it will take for regulators to be comfortable doing so? FF: I think that the members of the US Congress are not willing or interested in talking about anything beyond online poker. Poker is an American pastime, is not house-banked and is viewed by many as a game of skill, so it is viewed by members of Congress differently than other casino games. I don’t want to speculate on a timeframe for other forms of gambling being considered when we still have not had passage of legislation to legalise online poker.
5
CONSEQUENCES OF A DEAL
On 6 June eGR learned that Schleswig-Holstein's seven online gaming licences are under threat of being cancelled after only a month
The new government will examine how SH’s gambling law may be repealed “without giving rise to compensation claims”.
eGaming Review (eGR): Which state do you feel is best prepared to offer safe, well-regulated online poker? Are there any key differences in the approaches of, say, New Jersey and Nevada? Frank Fahrenkopf (FF): Nevada is the only state thus far to establish a full set of regulations to govern online poker, which would be put into effect should the state move forward with offering online games. The review of licensing applications taking place as we speak [at the time of writing Bally, IGT and William Hill have become the ?rst companies to receive egaming licences from the Gaming Control Board]. Illinois is offering lottery ticket sales online, though I haven’t reviewed those regulations. Nevada and the other commercial casino states have a long history of regulating this industry, so they have institutional knowledge. But that’s not to say other states shouldn’t have the right to license and regulate online gambling within their borders. The hope is that those states that want to get involved would look to experienced markets and regulatory bodies as a resource and model for their own regulations. We believ e that a federal overlay is vital to ensure consistency among state regulatory approaches. eGR: Can you envisage any mistakes being made by state regulators? FF: Without the establishment of federal minimum standards, there will be a patchwork quilt of rules and regulations that will prove confusing for customers and difficult for law enforcement to manage. We could see a “race to the bottom” with various states competing to provide the loosest regulatory framework to attract operators to their states. This would not be good for the business and certainly not for the consumer.
1
Land’s coalition government makes further announcements. Mathias Dahms, CEO of mybet Holding, one of the seven companies to have been awarded a licence, said the operator would “continue to expand” its German business on the basis of its licence approval last month.
4
2
Legal sources suggest that if the government were to cancel licences the vast majority of the seven would take legal action holding the coalition liable for damages.
Other applications, known to number at least 37 including 23 sports betting and 14 casino and poker applications, are on hold until the
3
5
In a more anodyne statement Betfair said it “remained hopeful” of working with the new coalition to ensure it operates there under the licence already awarded.
www.egrmagazine.com
9