About 6-Card Omaha

6-card Omaha, better known as “Six O”, has no new rules, it only adds to the number of cards dealt to each player. Previously 4, they were perhaps not enough to get the essence and feel of poker, as stated by Shyam Markus, Poker Room Manager. Totally 6 cards are dealt, two of which are blinds. The person at the Dealer’s left puts in chips double the minimum bet amount for the game. Each player must place a small (half) and a big (full) blind bet amount. Once the blinds are in place, the dealer deals six “hole” cards, these are your main cards, and only visible to you. Then the Dealer puts 5 “community” cards, facing up – they are a part of each player’s hand.

You make the best permutation of your hand, by choosing 2 out of 6 hole cards and 3 of the community cards. The FTP software helps you to frame the best hand. Six O has 4 betting rounds. Post betting, the Dealer deals 3 more community cards facing up, which are called the “flop” cards. The fourth card on the table is the “turn” card which is also a community card. The betting then proceeds. Lastly, the dealer puts the last community card called “the river”. Once the betting of the last round in equalized, the showdown begins – The best hand wins, with 2 hole cards and 3 community cards. The software automatically declares the player after determining the best hand. If there is no definite winner, the player making the blind bet in the beginning is declared the winner.

Latest updates from Full Tilt

Six O has been launched with a 6-max format because full circle games are impossible to play with single decks! Also, for all passionate gamers out there, FTP has declared that if you vote the Six O as the game of the week, your FTP points double for the entire week! In addition, FTP is also offering Micro Tube Online Poker Series prize pool of $7,500.

The preliminary rounds include Event 1 on June 9, with a guaranteed prize pool worth $10,000 – pooling amount starts at $1.10. If you have a 100 FT points, you can participate in the prize pool and claim your share. MTOPS is going to be held on June, 23, 2013 at 16:00 ET. The players are allowed to register for the one million dollar prize – main event up to 8 times. This is also the “No Limit Holdem Turbo tournament” that is starting at a sum of $10,000 and a $15 buy-in only.

Variants and other features at Full Tilt

Two new varieties of games have been introduced by Full Tilt.

• Five-Card Omaha: In this, players are dealt 5 whole cards as opposed to the conventional 4 card online poker. After flop, 5-Card Omaha follows the same rules as standard Omaha. The players use 2 of their hole cards and 3 cards from the community cards to make the hand with best five.

• Courchevel: In this variant the payers are dealt 5 hole cards. It also has a “flopet” – a community card, shared among all the players. Over the flop card, another two community cards are dealt. At the end or showdown, the winner is declared on the basis of the best hand.

• Irish: A variant of Hold’em, this game deals four hole cards in the beginning in place of two pre-flop cards. 2 out of the 4 hole cards must be removed from the hand after the flop round, and the game then proceeds like the standard Hold’em. Irish is available in both No Limit as well as Pot Limit formats.

If rumors are right, at least two different sponsors are attempting to release the gambling legislation in the national level, where all the citizens of the United States of America will be eligible to participate in a poker room located anywhere in the country. But the matter of the fact is that, none of these rumors has ever received any official confirmation from any source. So, before becoming too eager about the future prospects, let us consider some of the recent developments on the state level.

Verdict of Louisiana Legislative Session on Online Gambling

Starting with the positive proceedings first, the current session of the Louisiana Legislative house encourages studying the possible benefits of introducing online gambling in the state. The house voted a 62-22, in the favor of the notion that a formal study on the feasibility and benefits of online gambling be done and presented, before the house in the latter proceedings. It is ray of hope for online gaming enthusiasts, which may lead to the acceptance of the bill, allowing online gambling sites to operate in Louisiana.

After the report is made, the matter will be presented in the Senate office for the final verdict. The Senate committee will study the report, and upon considering all the issues, will debate on the same matter. Only after these votes are taken into consideration, will the fate of the Gambling Legislation in the next few months, be decided. The lawmakers of Louisiana have been toying with the idea of allowing online poker rooms in their state, after a proposal put forth by Mike Huval in March, who suggested this way, to achieve higher revenues for Louisiana.

Verdict from Massachusetts Legislative Body on Gambling Laws in the State

After consecutive failure of the proposal to legalize online gambling sites in their state, in the past two years, the chances of the bill passing this year were grim. The same proposal was made for an amendment in the 2014 budget discussions of the session. The latest attempt to gain some interest in the bill was also ruled out quickly, as the session termed it unconstitutional before removing it from the proposed budget.

The online gaming enthusiasts in Massachusetts were eagerly awaiting a verdict on the legalization of online gambling in the state, before the three were casinos schedule to open in their lands. It is already established that one slot parlour and three casinos are going to be inaugurated in Massachusetts, some time in 2016. So it was an obvious assumption that the bill will not face as much resistance this time, but sadly this did not happen. The public of Massachusetts will have to wait patiently in order to see their legislative body reconsider the bill, hopefully in the near future.

End of Spring Session in Illinois without a Verdict on Gambling Legislation

The spring legislative session in Illinois could not arrive at any decision before the end of the session, on the gambling expansion bill. The clearance of this bill would have allowed for three new casinos to be opened in the state. The proposal for infrastructural development like setting up an airport, racetrack and slot parlours were also not discusses in this session.

The state apparently is facing a pension crisis, which was very much the topic of discussion, and the gambling bill was pushed to the summer session for debate. The draft of the online gambling legislation was removed from the gambling expansion bill a few weeks ago, and made into a separate bill, which has not been raised in front of the session members yet. The session discussed some of the more pressing topics like gay marriage legislation, pension reforms, and concealed carry for weapons for most of the time, ruling out any chances to discuss the online gambling legislation.

After the legalization of online poker and betting real money in few American states, WSOP.com is the second site to start accepting real-money wagers from players for online poker games in the state of Nevada. WSOP.com follows lead of Ultimate Poker, which launched the first real-money online poker site in the United States of America. It offered the first-of-a-kind regulated online poker games in the morning of April 30, 2013.

After the Launch

Within 5 minutes of its grand launch, players were allowed to register and establish their individual accounts on deposition of some amount of cash. Following this, they could choose their screen names, although the site is restricted only to people living Nevada, and no one outside the region, who is willing to play, is allowed to participate at the moment. However, they can play once that option is available, and this is believed to be available soon.

In addition, visitors in town who came to participate in the World Series can access the virtual poker rooms as soon as they are made available. Las Vegas, receives a lot of poker gaming enthusiasts throughout the years time, therefore the virtual game rooms will be made available to them during their visit tenure soon.

Awaiting the Big News

For online poker enthusiasts who are looking forward to the launch of the real-money game rooms, there has not been any official announcement regarding the same as of now. The Vice President of Caesars Corporate Communications, Seth Palansky however, suggests that the launch can be expected in some time this year during summer. Sadly, he fails to mention even a tentative date on when the real-money online poker room will come into existence.

Seth Palansky said in a media conference, that everyone in the team is working really hard to complete all the work required to launch the real-money poker room in the state of Nevada, very soon. Also, he said that unlike many other online sites, they want to get it right and have all the signoffs ready before they actually announce a date. Caesars Interactive Entertainment had received the approval license to launch an online poker site in Nevada last year in the month of December. It plans to release the WSOP based software to make real-money poker available to citizens and tourists in Nevada on 888’s software platform.

All American Poker Network and 888’s software platform

The 888 platform received license for interactive gaming in March in order to operate in the state of Nevada. The All American Poker Network (AAPN) is all set to be launched under the same platform. 888’s software platform has made arrangements to launch a poker room in association with Treasure Island in the state of Nevada.

On the launch of real-money online poker rooms in Nevada, players can access their accounts and bet money even when the poker table is in Rio. The director of the Annual World Series of Poker, Jack Effle, said in a conference that the electronic devise rule will be effective for all players and can be shed only when the player is playing in an active hand of poker. Electronic devise rule states that a player actively participating in an active hand poker room is not allowed to use any other electronic items, which can be miss-utilized for cheating in the game. When not playing in an active hand, the players can use their electronic devices as long as no one suspects them of cheating in the game.

Adding to his statement, Jack Effle said that he is only concerned about the smooth proceedings of the tournament or World Series, and that the players should concentrate more on the tournament ahead than making money or engaging in futile attempts to cheat. In the meanwhile, poker game enthusiasts are still awaiting an official press conference or announcement regarding the release of the WSOP.com software enabling the access to real-money poker room in Nevada.

Governor of Nevada trying to introduce inter-state gambling within the US

Since Nevada is the only state in the US to have a legal online poker website at present, the Governor of the state, Brian Sandoval is trying to propose an inter-state gambling network within the country. Sandoval has started contacting state authorities that have a positive opinion towards online poker, to come together to form an inter-state online poker network within the country.

According to Sandoval, inter-state gambling laws will benefit all the states that have legalized online poker. This is because, an inter-state association will increase the player pool for all the states, and the operators will be able to make higher revenues. In addition to this, the domestic gaming operators will have the same exposure as offshore operators.

The details of this proposal have not been released yet, but Sandoval stated that he had already conducted a meeting with some of the governors in order to discuss this proposal. He stated that this proposal was still in its initial stages, and that the state authorities will have to conduct many more meetings in order to implement this proposition.

At present, Sandoval is discussing this proposition with New Jersey and Delaware, because apart from Nevada, they are the only two other states that have legalized online poker within their premises. Nonetheless, Sandoval is going to pursue states such as Texas, Massachusetts, California, and Illinois as well.

States like California and Illinois warming up to the idea of online poker

At present, a lot of the states in the US are considering bills on legalization of online poker. In fact, states that have rejected bills on online gaming and online poker are re-considering such bills once again. The state of California is an apt example of this phenomenon wherein the Internet Poker Consumer Protection Act of 2013 is presently under consideration.

This act is the third attempt by the poker enthusiasts in the state to legalize online poker, and the sponsors of the bill feel that the act has a good chance of being passed at present. The sponsors feel that the success of Ultimate Poker will have an impact on the state authorities, and the fact that Governor Sandoval is trying to regulate an inter-state poker industry, will influence the mindsets of the concerned officials as well.

If this act is passed within the state, several job opportunities will be created for the residents within the state. In addition to this, since the state has an approximate population of 37 million residents, the poker operators will be able to make a lot of money in this region. In other words, the California state authorities will be able to collect a substantial amount of money in terms of revenue from the poker operators. Keeping in mind the positive impacts that this bill will have on the state, the sponsors are hoping that at least this time, the state authorities will pass the bill.

The present status of online gambling in Illinois

The state of Illinois has not legalized online poker within its premises. But in the past two years, poker enthusiasts have filed several legislations in the Illinois legislative house to make online gambling legal. As a matter of fact, Senator John Cullerton, who has supported previous unsuccessful bills on online gambling within the state, is presently drafting a bill on online gambling. The complete details of this bill have not been released, but according to experts, this bill will be based solely on online gambling.

According to reports, the draft of the bill by Cullerton, proposes legalization of online gambling where the operators will have to pay close to $20 million in order to obtain licenses from the state authorities. In addition to this, based on type of online game that an operator offers, he or she will have to pay an annual tax of 7.5 to 20 percent. Also, all the aspects of online gaming will be treated in the same manners as sports betting, so all the reservations with regard to sports betting will apply to online gaming as well.

Apart from the taxation policy, this bill will clearly specify the governance system for the online poker industry. According to experts, if online gaming is legalized within Illinois, only players above the age of 21 will be permitted to play on the legalized networks. In order to keep a close watch on all the operators, a separate division named the Division of Internet Gaming will be set up within the state. The lottery chief of the state, Michael Jones will have all the regulator powers with regard to all the state agencies, and if the legalized gaming operators wish to sign contract with offshore companies they will have to consult the division, and the chief of lottery.

Iovation does not have a business license to operate in Nevada. But Ultimate Poker was using its services pertaining to player identification. On April 30, Ultimate Poker went live and its Iovation connection was revealed within hours. While not licensed for business in Nevada, Iovation was a subcontractor acting on behalf of CAMS/Verifi which provides support services and is licensed to operate in Nevada.

The circumstance under which Iovation was involved in operation is being investigated by the Gaming Board of Nevada, according to the Las Vegas Review-Journal (LVRJ).

Iovation not licensed to function in Nevada

Iovation has no license to function in Nevada, yet the manner of its functioning and the circumstances of its operations are being investigated. Ultimate Poker is also likely to be implicated even though it has the license to operate in Nevada, because the player identification services offered by Iovation were used by Ultimate Poker. The confirmation of investigation was further corroborated by A.G. Burnett, chairman of the Nevada Gaming Control Board.

It is unfortunate that Ultimate Poker landed into problem within hours of getting its debut operation live on April 30. Even more unfortunate is the fact that Iovation, the online security firm had only served briefly before it landed into trouble. Additionally, CAMS/Verifi could also be in for trouble. This Nevada licensed support service provider had subcontracted its job to Iovation.

According to Chairman Burnett of the Control Board of Nevada Gaming, it is the licensee who is ultimately responsible for the glitch. In other words, the maximum burden of responsibility will be borne by Ultimate Gaming. They are currently addressing the issue. Based on the defense of Ultimate gaming, further action may be initiated. Earlier, Iovation’s past was criticized because of which they were dropped by Fertitta Interactive, the parent company owning Ultimate poker.

Ultimate Poker’s hesitation over hiring Iovation

Iovation, a Portland, Oregon based company came into existence with the success of UltimateBet, an online betting company eventually bought by Absolute Poker. But it was a target of the crackdown known as Black Friday by the US government.

Recently, Ultimate Poker announced that they have severed their ties with Iovation, providing the service of player verification. Concerns were raised earlier on the association between disgraced UltimateBet and Iovation. On May 9 a short statement was posted on a poker forum claiming dissociation between Iovation and Ultimate Poker. It is on forum 2+2 that online poker players gathered to disapprove of Iovation. According to the statement it is hoped that the players will feel more comfortable.

Iovation comes into picture through CAMS/Verifi. This service provider offers anti-fraud checks and player verification. The Commission on Nevada Gaming is the agency that authorized CAMS to provide their services to poker companies operating online.

Greg Pierson is listed as the current CEO of Iovation. He is also the founder of UltimateBet. His past record is tainted with widespread implications for cheating. Between 2003 and 2007, he was alleged to have stolen over $20 million from players. According to some information, the company insiders helped support cheating by making it possible to see hole cards of victimized players with the use of what is known as “god mode”.

Following the regulator KGC investigation, Russ Hamilton was originally implicated as the sole individual blamed for cheating. But some of the secret records that were made by Hamilton alone and published recently tell a different story. It is now revealed that there were others including Pierson who were aware of the ongoing cheating. The audio recording reveals his discussion with lawyers on how they could bury the scandal.

It is evident that the circumstances under which the issue has risen will pose a new set of challenges for Ultimate Poker. Their association with Iovation has already damaged the company’s reputation. It is not enough that they are now dissociated. It will take time and effort to get their reputation back in the industry which may not happen anytime soon.

Ultimate Poker – The first online poker site in Nevada

The poker market in Nevada is newly regulated while Ultimate Poker is the first poker online site that has gone live. Within hours of their going live on 30 April, their association with Iovation was revealed, so the company may have to shut their operation at least till the time investigation is complete. Additionally, they will need to clarify that it is only an accident that their name sounds similar to a disgraced company. Ultimate Poker and UltimateBet are not related as their names might suggest. On the contrary, its name derived from Ultimate Fighting Championship or UFC, while its brand owner is Fertitta.

The changing mindset of the tribe members

According to reports, the US tribes have not always been supportive of online poker. As a matter of fact, a few months back, these tribes were against the legalization of online poker as they felt that online poker would impact their mortar and brick casino industry. But after the legalization of online poker in Delaware, New Jersey, and Nevada, and the recent launch of Ultimate Poker, the tribe members are warming up to idea of online poker as well.

The Chairman of the Pechanga Band, Mark Macarro stated that the tribe representatives need to move ahead with time. He said that this is the right opportunity for them to collaborate with the state authorities, and to introduce online poker in their business as well. In the past, Pechanga Band was not in favor of legalization of online poker. But according to Macarro, if the tribes don’t change their mindsets they might be ignored during the formulation of online poker laws.

Since legalized online poker sites are still a relatively new concept in the US, the tribes have a chance to include them in the casino industry. But if they don’t take any actions now, experts feel that federal laws with regard to online gaming might impact the tribe’s casino industry drastically.

Tribal representatives work together to propose the legalization of online poker

According to a lobbyist, Agua Caliente, from the Cahuilla Indians tribe, the tribes that have come together are trying to achieve a common goal. He stated that a lot of tribe members have been working on the formulation of the legal proposal for few months now, and the proposal should be submitted in the coming few days.

An Attorney from the San Manuel Band, Jerry Levine feels that all the tribes that support the legalization of online poker should formulate a common proposal. This is the primary reason as to why representatives from various tribes are discussing this matter together. Manuel has sponsored an online poker bill in the past, but that bill was not approved by the state authorities. Since he has experience in writing a proposal, he is guiding the tribe representatives with the proposal.

The federal law with regard to online poker and online gaming

The tribe representatives need to formulate a proposal in order to get permission to legalize online poker in their tribes, as the federal law prohibits all forms of online gaming. So majority of the players who play online poker, or any other type of online casino game in the US, play on illegal offshore sites. In order to protect themselves from the federal laws, the tribes need to get an approved license from the state authorities.

The history of online poker with regard to the tribes

In the past three years, many tribes have made attempts to get online poker bills passed by the state authorities, but their proposals have always conflicted with existing bills or laws. This is the primary reason as to why the tribe representatives are being very careful about their current proposal, and they are going to conduct several meetings before finalizing their proposal.

Senator Rod Wright, the Head of the Senate committee that is concerned with gambling, has introduced a legislation that currently allows tribes to get legal access to online poker. Under this legislation, the tribes can apply for a five year license to operate online poker sites at present. But the tribe members are not very pleased with the policies that Wright has formulated. So, they are going to mention their point of view on the entire licensing system in their proposal. Through the proposal, the tribes are going to express their interest to achieve a gaming license for online poker, and they are also going to put forth their concerns with regard to the facilities available to them.

PokerStars’ owner-firm – Rational Group went to the New Jersey court in the second week of May 2013 to attain a provisional restraining order which keeps The Atlantic Club from encouraging any other buyer. In the previous week, The Atlantic Club had made a declaration stating that the agreement of sale with PokerStars was dead, without making any further comments. PokerStars’ reputation for its involvement in the events of “Black Friday” hasn’t helped its cause as regulators in the state seem reluctant to complete the licensing process.

The conflict between PokerStars and the Atlantic Club Casino

In the papers presented to the court, PokerStars disclosed the price at which it intended to take over the casino – an atrocious $15 million. Previously, the lowest price offered by a company from California for Trump Plaza was $20 million, which failed to materialize last month. So if the $15 million deal is successful, it will be the lowest-priced negotiation for an Atlantic City casino.

When PokerStars approached the court for a restraining order, it revealed that it had already paid The Atlantic Club around 70 per cent of the purchase price. But The Atlantic Club, according to PokerStars’ representatives, wants to put the deal to bed and obtain another $4 million toward termination fees. Rational Group feels hard done by The Atlantic Club. This is because if the former complied with such a demand, it would have paid $15 million in total, which is the total purchase price, for absolutely nothing in return.

The Atlantic Club also requested a further $6 million so that the contract of sale could be extended for another ten days. It intended on using this time to seek more profitable offers from other potential suitors. Officials from Colony Capital LLC – The Atlantic Club’s LA-based parent company, as well as the casino itself refused to comment on the allegations.

A PokerStars’ spokesman, Eric Hollreiser said that the Rational Group is responsible for funding the shortfalls of the Atlantic Club since October last year. This prevented the unemployment of more than 1800 employees and the casino’s inevitable bankruptcy. He added that the Rational Group is completely committed to finding a solution to this problem. The Rational Group wishes to complete its investment in the Atlantic City while continuing to conscientiously work on finalizing the necessary licensing process.

PokerStars’ deal to acquire The Atlantic Club was regarded as a mutually advantageous one due to the fact that the casino had been under severe pressure for several years. The Atlantic Club was among the worst performing casinos in Atlantic City in terms of profitability and revenue. PokerStars was expected to benefit from the deal as it would finally have its much-sought-after ticket to the money-spinning market of online gambling. New Jersey is one of the three states in the United States, along with Delaware and Nevada, to acquire legalized online gambling permits. So, PokerStars was set for a big increase in business. But it’s not sure if the deal will be successful in the near future.

Delay in getting approval from the New Jersey casino regulators

Rational Group’s bid to purchase the Atlantic Club Casino is being examined by casino regulators in New Jersey. Although no decision is imminent, the regulators must surely consider the firm’s history of engaging in betting activity in the US prior to being deemed explicitly legal. PokerStars was among the three companies that were under the Justice Department’s microscope in 2011 when the illegal online gambling crackdown called “Black Friday” took shape.

In 2012, Rational Group had agreed to pay the Justice Department around $547 million and overseas players are set to receive $184 million as compensation for alleged illegal gambling, bank fraud, and money laundering. The company says that it did no wrong, adding that it enjoys good relationships with the governments of many countries across the globe. PokerStars’ reputation was expected to go before the company and pose difficult barriers to its efforts of acquiring licensing from casino regulators in the state. In addition, The AGA (American Gaming Association) – the trade company which represents America’s brick and mortar casinos – is firmly against the completion of the deal. It intervened the licensing hearing in order to make its points against the projected acquisition.

The performance of the Atlantic Club in terms of profitability and revenue has been pretty bad in recent times. The casino faces stiff competition from newer and bigger casinos in the state as well as outside, so much so that it almost shut down a few years ago. While PokerStars’ proposed purchase will inevitably help the casinos owners turn a leaf, they seem to be holding out for a better bid.

MGM Resorts International planning on entering Nevada

According to the Chief Financial Officer of the company, Dan D’Arrigo, the company is debating on whether or not they should enter the online poker industry in the state of Nevada, but they have not made a decision as yet. He stated that at present, Nevada seems to be a good destination for all the companies that deal in online poker, but the population of the state is not a very attractive factor.

The online gaming law in the state of Nevada states that the providers that are given licenses to operate within the state can provide online poker only to the people residing within the state. Since Nevada is not a very populous state, the officials from MGM resorts are not sure if obtaining a gaming license within the state will be profitable for them.

D’Arrigo said that the company is currently analyzing the online poker market within the state. Once the data collection process is over, the company is going to compare it with their expected operating cost in the region. According to officials, the company is going to apply for a license in Nevada only if it feels that it is going to make a substantial amount of profit. So at present, the company has not reached a concrete decision on this issue.

MGM Resorts obtaining licenses in other states

Even though the company officials are critically analyzing whether or not they should obtain a gaming license in Nevada, they have already applied for a gaming license in Delaware and New Jersey. According to D’Arrigo, the state laws and population size play a very important role in determining the success of any industry in that region, and MGM Resorts is very particular about the state that they operate in. Since New Jersey and Delaware have a larger player base than Nevada, the company has applied for licenses in both these states.

According to experts, all poker giants would prefer following federal laws with regard to online gaming as that would give them a larger scope to establish a loyal player base across the country. Since there is no provision for the companies to operate on a federal level at present, they would prefer states with a large player base. The poker companies need to spend billions of dollars so as to pay high taxes. So, they need to operate in places that have a player base that can earn them a higher amount compared to their operating cost. This is the primary reason as to why New Jersey has gained popularity among big poker companies.

Statistically, the online poker market in Nevada is expected to yield between $50 and $250 million in a year’s time. On the other hand, the poker market in New Jersey is expected to yield close to a billion dollars in one year. The statistical difference between both these regions is extremely high, so there is no surprise that large companies are choosing New Jersey over Nevada.

D’Arrigo stated that the company wanted to wait for a federal law on online gaming within the country, but since New Jersey seems to have good financial potential, the company is going to concentrate on establishing its online poker business within that state.

The scope of online poker on a state level

According to experts, the online poker industry has a lot of potential in several states, but the state governments need to be particular about the laws they impose on the operators. The officials from MGM also agree with experts, and they are hoping that like their other gaming businesses in Las Vegas and Macau, their online poker initiatives will also prove to be profitable in the long run.

The difference between the estimates begins to look even bigger when you consider the fact that the state administration’s numbers are only for the fiscal year, which does not begin until July 1, while the more conservative numbers are for a full year. The hole in the budget all of a sudden seems more gaping. Another thought that perhaps escaped the administration’s number crunchers is the fact that nobody is quite sure as to when the people of New Jersey can actually begin online gambling. The state’s Division of Gaming Enforcement is said to be thinking about giving online gambling a go sometime between May 26 and November 26. But even the most zealous lobbyists wouldn’t bet on a July 1 kick-off.

The predictions with regard to online gaming revenue in New Jersey

The New Jersey administration’s estimate of online gambling generating a $180 million revenue in the first year has been called into doubt by studies conducted by a couple of research firms. Their reports suggest a far more conservative figure of $40 million in tax-revenues for Governor Christie’s administration.

The New Jersey State Treasurer has revealed that the state’s calculation is based on a Wells Fargo Securities report that came out in January. The administration approximated the first-year income to be $1.2 billion. With a tax-rate of 15 percent, it figured the tax revenue for itself to be $180 million. But a study carried out by Econsult Corp. in December 2010 for the lobbying arm of the online gaming industry, iMEGA, estimated the revenues to be in the range of $210-$260 million.

The tax revenue of the state ranges from $31 million to $39 million. The estimates by Econsult have found agreement in a report issued two weeks ago by an online gambling research firm, Gambling Data. The report offered a huge step-down from the astronomical $180 million hoped by Governor Christie’s administration. It estimates the first-year revenue to be around $261.9 million which would translate into $39.3 million as revenue for the state. Even the findings of Wells Fargo Securities seem to be at odds with government’s calculations. The report states that the near-term revenue for the online gaming industry could be between $650 million and $850 million. This would mean $127.5 million as revenue for the state, which is way lower than the administration’s estimate.

The different online gaming revenue estimates have led to a lot of conjecture by people and they seem to believe in those estimates which they feel more confident of. State Sen. Paul Sarlo has gone on record saying that he believed the government’s estimated figure to be wrong and lacking in credibility. Bill Quinn, a spokesperson for the Treasury Department, has also admitted that there could be different opinions on the revenue numbers. There’s another point which could damage the administration’s first-year revenue estimate even further. Governor Christie’s administration came out with its $180 million estimate for the fiscal year starting July 1. With the complex web of regulations preparing the infrastructure for online gaming, it could take gambling companies longer to begin operations in the state and attract consumers. Even the supporters of online gambling consider July 1 as an impossible deadline to meet. But Joe Brennan, Director of iMEGA recently revealed that the group’s revenue estimates were toned down so that they could be used to push the legislation that Governor Christie signed only a couple of months ago. Brennan also went on to add that he felt the estimate given by Wells Fargo could well be reachable if things were carried out in  an organized manner.

The discrepancy in the expected figures

Governor Christie hopes that the online gambling industry would add $180 million in taxes to the state’s revenue over the next fiscal year. Meanwhile, there have been two studies – one commissioned by the lobby arm of the online gaming industry itself and the other by a reputed online gaming research firm – that pegs the first-year state revenue at $40 million. The administrators took $1.2 billion as the starting-year revenue for the online gambling industry and included a 15 percent tax-rate to work out the figure of $180 million.

Between the two other studies mentioned earlier, Gambling Data’s figures are latest and the prediction for the first year is $261.9 million. The revenue is expected to hit $462.9 million in the fourth year. The difference between the administration’s estimate and that of the other two studies could be starker. The state administration hopes to earn $180 million in the next fiscal year starting July 1, but the other reports are for a full year. Before the people of New Jersey can start gambling online, a lot of preparatory work remains to be done. This includes installation of the technical infrastructure, advertising, and marketing of the online gambling products among other things. Many in the online gaming industry feel that it might not be possible to go live till late in the year. This requires a re-evaluation of the state administration’s estimate.

Mashantucket Pequot Tribe’s interest in gambling

Mashantucket tribe is known for their interest in gambling and especially poker. The tribe owns a popular casino named Foxwoods Resort Casino, and this casino offers a variety of games to their customers. In addition to this, Foxwoods Resort Casino offers quality spa services and a variety of food to their customers.

The agreement between the Mashantucket tribe and the GameAccount Network

In a recent interview, a few members from the Mashantucket tribe stated that the tribe is going to collaborate with GameAccount Network to launch online gaming. The GameAccount Network is considered to be one of the best gaming system providers in Europe, and the tribe decided to join hands with them as GameAccount is going to provide the tribe with the latest technology games available.

According to reports, the collaboration is first going to focus on launching games that are meant purely for recreation and don’t involve any real-money investment. Since online poker has still not been legalized in a lot of regions in the US, the tribe is going to focus on establishing their name in the online market by offering innovative games that don’t involve wagers. But the collaboration has made plans of expanding their games and including the real-money component in them. They will need a proper license from the state authorities so as to do that.

The officials from Foxwoods Resort Casino stated that they have chosen to collaborate with GameAccount as this collaboration would give them the opportunity to launch real-money games in the future. The casino believes in following legal procedures and providing a fair gaming network to their players. They are excited to be working with a company that has similar notions as well.

According to the officials from GameAccount, the Mashantucket Pequot Tribe has been a leader in the brick-and-mortar casino industry for a long period of time. They company feels that they can help the tribe become a leader in the online gaming industry as well, and they are excited about working with Foxwoods.

Games to be offered on Foxwoods’ website

Once GameAccount has designed games for the tribe, the games will be launched on Foxwoods’ website. According to statistics, Foxwoods Resort Casino’s website has close to a million visitors in a month’s time. Since the casino website has a high rate of visitors, the officials feel that their free games will have a large player base as well. To attract more players to the network, the officials are planning on launching these games with a promotional feature.

The collaboration will supply gaming software to other operators

According to the industry experts, Mashantucket tribe and GameAccount are planning on providing gaming software to other operators in the US as well. But the tribe has not made any official statement in this context. This is because the collaboration will have to obtain a legal license so as to provide gaming software to other operators in the industry.

Local casinos trying to collaborate with software operators to provide games

Mohegan Sun, a popular poker gaming site, has introduced a series of free games on their network. So, once free games are launched on the Foxwood website, they will need to compete against the games played on Mohegan Sun’s poker site. Experts stated that a lot of the local casino authorities have been collaborating with gaming software providers to launch free games on their network. They feel that there are two main reasons behind this. Firstly, the operators want to establish their name in the online gaming market by offering free games, and secondly, they want to get permits so as to conduct real-money games in the future.