South Point Casino Owner
The owner of the South Point Hotel and Casino in Las Vegas, Michael Gaughan, has come out in favor of pending legislation in the Nevada Assembly that would open the first regulated and licensed online poker market in the United States. By making this pronouncement, Gaughan became the first major casino owner to support the legislation in question.
The move by Gaughan comes as a surprise to those in favor of Assembly Bill 258, the legislation proposed by William Horne (D-34th District). The legislation was proposed by Horne back on March 10th and is scheduled for its first hearing in front of the Committee on Judiciary at 8:00am tomorrow. The bill would “enact provisions governing the licensing and operation of internet poker” inside Nevada’s borders and assist the state in curbing a budget shortfall expected to reach $1 billion.
The owner of South Point, Michael Gaughan, has announced that he will be giving employees an extra $1 million this year because of President Donald Trump's tax reform bill.
Gaughan cited many reasons for backing the legislation. He believes that passage of AB 258 will enable the state of Nevada to reverse the shortfalls in the budget and curb double-digit unemployment.
Perhaps more important to a businessman such as Gaughan is the opportunity for the state to take the lead when it comes to regulating the online poker industry. “There is no doubt in my mind that online poker and other games are coming,” said Gaughan. “AB 258 would make us a pioneer in the nationwide movement and the leader for the rest of the country to emulate.”
- The owner of the South Point Hotel and Casino in Las Vegas, Michael Gaughan, has come out in favor of pending legislation in the Nevada Assembly that would open the first regulated and licensed.
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AB 258 is supported by PokerStars and there is language in the bill that would allow companies that have continued to accept American players in alleged violation of the Unlawful Internet Gambling Enforcement Act. Sites like as PokerStars, Full Tilt Poker, and Cake Poker would be eligible to apply for licenses, something that was a major sticking point in recent Federal legislation regarding legalizing and regulating online gaming.
Other text in AB 258 shows how relatively easy it would be for the state of Nevada to set up a regulatory and licensing format. Information provided by the Nevada Gaming Commission shows that, if the bill were passed, it would cost approximately $831,000 to implement the regulatory mechanics. The taxes and regulatory fees that the state’s regulatory agency would collect should, in all likelihood, vastly outweigh these costs.
Other casino owners have not been as quick to embrace AB 258, however. In an article in the Reno Gazette-Journal that appeared shortly after the measure was introduced, Caesars Entertainment – the owners of the World Series of Poker and a multitude of casinos in Las Vegas – came out as staunch opponents of the proposed bill. Jan Jones, Caesars Entertainment Senior Vice President for Communications and Public Relations, stated at that time that the proposed bill was the wrong way to approach the legalization of online poker.
“Our focus is not intrastate, our focus is interstate,” Jones is quoted as saying. “It’s Federal, it’s putting together an American law, an appropriate regulation and licensing regime and taking the jobs and revenues going to foreign companies and bringing it back to America. The internet, by its nature, is an interstate activity, and the rules should be crafted appropriately.”
Also against AB 258 is MGM Resorts International, the ownership group behind such popular casinos as the Bellagio, CityCenter, and Mirage in Las Vegas. An MGM spokesperson told the Wall Street Journal, “You have one company [PokerStars] trying to impose a business model on legislation. We have to eliminate illegal online gambling and crack down on foreign operators that don’t comply with Federal law.”
Tomorrow morning’s meeting of the Committee on Judiciary in the Nevada legislature will be a pivotal point on the future of online gaming in the state. We’ll keep you posted.
Michael Gaughan, owner of the South Point Hotel and Casino in Las Vegas, has become the first owner of a Las Vegas casino to publicly support a bill that would legalize Internet poker in Nevada. Assembly Bill 258 would allow the Nevada Gaming Commission to regulate and license online gaming. The bill, introduced by Assemblyman William Horne, is the most player-friendly bill ever proposed in the U.S., and is supported by online poker giant, PokerStars.
When the bill was introduced, optimism was quickly stymied by opposition to the bill from casino giant Caesars Entertainment. It figured that other brick-and-mortar casinos would follow Caesars' lead, providing a huge roadblock for the legislation. However, Gaughan's public support for the bill provides a ray of hope that the legislation may yet have a chance.
“There is no doubt in my mind that online poker and other games are coming,” Gaughan said. “AB 258 would make us a pioneer in the nationwide movement and the leader for the rest of the country to emulate.”
Nevada is facing over a $1 billion deficit and a 13.5 percent unemployment rate. Gaughan believes that legalizing Internet poker could add employment opportunities and could bring over $500 million into the state budget.
Most bills that have been discussed in the federal or state governments have included wording that's frustrating even to poker players who long to have legitimacy for their game. The proposal from Sen. Harry Reid last year had a 15-month blackout during which no one in the country would be able to play online. The bill recently introduced in Congress by Rep. John Campbell includes wording that accuses existing operators of illegal activity.
The Nevada bill specifies that it would not discriminate against existing operators like PokerStars and Full Tilt Poker, and that it would authorize the Nevada Gaming Commission to enter into compacts with other jurisdictions where interactive gaming is not prohibited. Initially, this means Nevada could partner with foreign countries that allow online poker. Over time, other states could pass legislation to join the Nevada network and Nevada could become the center of online gaming, just as it is for brick-and-mortar casinos.
Gaughan said he doesn't mind PokerStars and Full Tilt Poker being allowed to participate in a Nevada system.
'I don't think you should eliminate any one group of people,' Gaughan said. 'If you have an open bill, you have an open bill. I hate to see a monopoly on anything.'
Caesars, formerly known as Harrah's, and MGM are in favor of online poker legislation but want it to be passed at the federal level. Gaughan said he supports a state bill because he believes it would be better for the smaller casinos in Nevada.
'The federal bill was pro Harrah's and MGM, and wanted to keep everyone else out,' Gaughan said. 'I don't want the big places to wind up with it, and the little guys can't get it. Pass the bill and let the chips fall where they may. I think a state bill opens it up for everybody.'
Gaughan said he doesn't know if other casino owners will follow in his footsteps, and that he will not lead a lobbying charge in favor of the bill.
'I think it's good for the state,' Gaughan said. 'I don't know how good it will be for me, but I think it will benefit the state. That's why I'm not opposing it. I think others may be mad about it, but I don't care. It won't be the first time I'm at odds with Harrah's.'
PokerNews is monitoring this issue closely and will keep you updated with further developments, so stay tuned for more, and as always, follow us on Twitter for up-to-the-minute news.
Owner Of South Point Casino
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