888 back in the US before years end?

Ever since  the major European based online casinos said goodbye to American players after UIGEA was enacted in 2006, there have been rumblings about the possibility of them re-entering the US market.  Those rumblings got considerably louder in early 2011 with a couple of notable partnerships being announced between Nevada based casinos groups and online operators (Wynn/PokerStars, Caesars/888), that hinted at the improved prospect of internet gambling regulation in the United States.

Then in April 2011 came US online poker’s Black Friday – an all out assault by the Department of Justice (“DOJ”) on the major US-facing online poker rooms. Seized domains, frozen accounts, indictments against company directors…the whole nine yards.  The message from US authorities was unequivocal – we’re not happy about online poker firms accepting US players;  we will go to great lengths to shut them down, and just to make sure that everyone hears our statement loud and clear, we’re going after the ‘big 3′ – Full Tilt, PokerStars and Absolute Poker.

All of a sudden things went very quiet on the regulated online gambling speculation front.  The Wynn/PokerStars partnership dissolved faster than a fat kid eating a cup cake and Europe’s big net gambling companies forgot about the US and turned their attention to scooping up disgruntled ex- Full Tilt, PokerStars and Absolute Poker players outside the US who were understandably concerned about the security of their playing accounts.  The fallout from Black Friday and the DOJ’s strategy and motives for such an aggressive move remained the hot topic of discussion for the remainder of the year. Until that is, they stole their own spotlight with another move that was just as unexpected.

Out of the blue, on eve of Christmas 2011, they issued a public opinion that the Wire Act (1961) still applies to make sports betting over the internet illegal, but has no application to other forms of gambling online – a very significant about face opening the door for regulated poker and casino games online.

Clearing the decks

On the face of it this about face seems completely contradictory to their staunch anti-online poker stance just months earlier. But in some ways it does make perfect sense.

If you have plans to foster a regulated online gambling market, you have to kill the thriving unregulated market first.  Asking licensed companies to accept the burden of regulatory restrictions and gaming taxes and still compete against unlicensed operators paying no taxes and operating with impunity isn’t going to work.

Game on again for 888

According to a report in today’s Telegraph  888 are once again optimistic that they’ll be able to offer locally licensed poker and/or casino games in the near term.

CEO Brian Mattingley has said that he is hopeful that the State of Nevada will issue licenses before the end of 2012, and his company will be at the front of the queue having already had its B2B partnership with Caesars Interactive Entertainment rubber stamped by the Nevada Gaming Control Board. He also said that 888 is, “very, very close” to signing a business to consumer deal “significant” US casino brand – Wynn Resorts and LV Sands are names being touted by analysts.

Looks like momentum is gathering again.  Until the next big surprise that is!

Related pages at livedealer.org:

• 888 Casino in the US? The plot thickens
• Market changer: American Internet gambling regulation
• US Online Poker: DOJ and FBI crack down
• Professor I Nelson Rose comments on Black Friday
• Department of Justice changes online gambling stance
• Jack Abromoff talks DOJ about face and legalized US online gambling