Iowa regulators release poker report
Examination of potential online poker framework follows discussions with egaming operators.
The Iowa Racing and Gaming Commission has published the results of its study into the impact of regulated online poker in the Hawkeye State.
It contains details of consultations with potential intrastate poker operators, as well as compliance testing facilities including BMM Testlabs and GLI.
The two potential operators named are US Digital Gaming and SciPlay, the latter having already launched a freeplay poker offering in another US state, California.
Among the existing regulations assessed were those in Alderney, the Isle of Man, the United Kingdom, Canada and Antigua, while federal and intrastate regulatory proposals in the United States were also examined.
The publication of such a report was approved by the state’s legislature in May, one month after online poker elements were stripped out of Iowa’s egaming proposals. In March a bill containing online poker provisions had narrowly passed through the committee stage.
It was already known that no egaming legislation would pass in 2011, but the latest report appears to open up the possibility of new poker-specific proposals next year.
A number of elements are discussed in the 106-page report, including the network model and taxation system.
Regulators acknowledge that “The majority of operators are opposed to the deposit tax [as opposed to the alternative of a GGR tax] because of the significant up front cost to them with the unknown amount of revenue a player will generate for the site.”
Projections in the report also indicate that a tax on rake from online poker in the state would likely generate a maximum of $13m in annual tax revenues, less than half of the previous estimates of $30-35m.
In her recent opinion piece for eGaming Review, consultant Scarlet Robinson predicted that the lack of significant progress on a federal level would pave the way for developments on a state-by-state basis.
While the District of Columbia and the state of Nevada have both already passed some form of intrastate regulation, neither have implemented their proposals to date.
Nevada regulators have revealed that online licence applications could be assessed from February, while DC legislation has run into fierce opposition and implementation was delayed as a number of ward meetings were held across the jurisdiction.
New Jersey saw an egaming bill vetoed at the 11th hour by Governor Chris Christie in March, while other states such as California and Florida have also made moves towards an intrastate solution, however a recent bill in Massachusetts had all online elements stripped out when signed into law last month.