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Q&A: Representative Dan Winslow

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Rep. Dan Winslow, MA.

 

 

 

 

 

 

 

eGR North America talks to Rep. Dan Winslow, of Massachusetts about the potential of regulated online gambling in the state, and how close it is to becoming reality

What prompted you to become interested in introducing online gambling legislation?

Recently, and after much debate, Massachusetts decided to stick its toe in the gambling water and legalised casino and slot gaming. Around that time in November 2011 we had a budget debate and I filed an amendment for internet poker as part of the state’s budget. The state budget debate order precludes any amendments affecting gaming. So I simply filed it to get it noticed and start conversations about internet poker as an opportunity for Massachusetts.

The amendment was ruled ‘out of order’ but it gave me the opportunity to have some very significant discussions about the issue. Soon after was the Department of Justice opinion of the 1961 Wire Act, the first positive signal by the federal government that intrastate gaming opportunities could exist in the US. My hope now is that the House will include this in an economic development bill, which would be a huge step forward. If not, I plan to file it as an amendment and that would be done some time in the next few months. The biggest barrier would have been the decision whether or not to have gaming at all.

What is the size of the potential egaming market in Massachusetts?

Massachusetts is the number one state for lottery sales. For a very small state with a population of just over six million people we make almost US$4bn of lottery revenue a year, so clearly this is a state of people that are willing to take a chance on games of chance. We have a lot of potential in terms of talent here, with a great wealth of high-tech talent in the state.So, there are significant revenue and job opportunities as well as consumer protection provisions that we aren’t taking full advantage of to the fullest extent now allowed under federal law.

Do you favour a state-by-state approach, or see opportunity to create state compacts?

I think state-by-state is the best way to do it. This is because the barriers to entry are much lower. I absolutely believe that we will see intrastate compacts, like we have seen with lotteries, because the precedent is there and it seems like a logical extension.

How soon could online poker sites be up and running in the state?

The treasurer’s internet gaming taskforce intends to have its report done by 1 December of this year. The legislative session begins anew in January 2013. I wouldn’t be surprised to see legislation considered now but ultimately it takes these things a while to go through legislative processes. Intrastate internet poker on the table in Massachusetts next year wouldn’t be a surprise.

What form would the licensing procedure take in Massachusetts?

There are two possible models. One would be regulation through the state lottery commission. The proposal that I put into play is under the Massachusetts Gaming Commission, which is the agency that overlooks casino and slots where there are currently rigorous standards for assuring integrity and in-depth background checks.  Because of that I prefer to see the Gaming Commission do that role, because they will be equipped to do the exact same level of scrutiny as they currently do for casinos and slots.

The licensing costs are all subject to future discussions. For purposes of my amendment I propose three ‘Class 3’ internet licences with a minimum fee of $10m, minimum duration of ten years and a 25% gross gaming revenue tax but to have that offset from the licensing fee. So the first $10m of revenue would be tax free until you got your licensing fee back.

Online poker for Massachusetts in 2013, claims Winslow

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Representative Winslow is confident about online poker’s chances in Massachusetts

Republican Dan Winslow plans amendment to state gambling laws


Online poker sites could go live in Massachusetts next year, according to Representative Dan Winslow who is pushing for amendments to state gambling laws for the second consecutive year.

In an interview with eGaming Review North America, Winslow (pictured) expressed optimism for online poker regulation following efforts in April to include online poker legislation within an economic development bill.

The amendments would see licence holders pay a fee of US$10m dollars and be subject to a 25% gross revenues tax.

Massachusetts, which recently legalised three casinos and one slot machine parlour, has already established a state gaming commission for regulatory purposes and the state treasurer has created an internet gaming taskforce to examine the issue.

Winslow, who was legal counsel for Governor Mitt Romney between 2002 and 2005, said: “The treasurer’s internet gaming taskforce intends to have its report done by 1 December this year. The legislative session begins anew in January 2013. I wouldn’t be surprised to see legislation considered. Intrastate internet poker on the table in Massachusetts next year wouldn’t be a surprise.”

The opinion that Massachusetts is well-placed to develop online gaming is shared within the industry. President of the American Gaming Association, Frank Fahrenkopf said in a  recent speech at the Massachusett Gaming Commission’s first public forum on Thursday that: “Massachusetts is in a unique and enviable position because regulators have the opportunity to craft regulations that can address modern gaming from the beginning.

“Massachusetts can start fresh and incorporate some of the changes their peers nationwide are discussing. As you undertake the task of creating your regulations, I hope you consider the research and recommendations in our white paper and consider the AGA to be an ally.”


Ohio could add black period to internet sweepstake cafe legislation

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Lawmakers have the option of adding moratorium to block new venues opening for one year.

Ohio lawmakers are considering introducing a delay on new internet sweepstake cafes opening, as legislation that would see the gaming businesses become state-regulated is considered in the Senate.

The delay – that would forbid any new cafes opening for a year – could be added to House Bill 386 that was introduced by state Senator Joe Schiavoni in an effort to regulate existing cafes. If successful, the legislation would see such cafes placed under the oversight of the Ohio Gaming Commission.

Currently operating outside of state regulations, the cafes allow customers to take part in online sweepstakes games in exchange for purchasing ‘internet time’ or phone cards.

Internet cafes have become an increasingly prominent issue in the states with regards to online gambling, with venues in Michigan shut down earlier this month.

A yearlong moratorium would allow authorities more time to pass separate legislation regulating the cafes, but Senator Schiavoni has expressed opposition, saying: “It’s frustrating for me because it means we’re saying we’re not ready to do this so we’re just going to push it off until later.”

NJ politicians urge House to back sports betting bills

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Congressmen Frank Pallone Jr and Frank Lobiondo present “two separate, but equally effective, pathways toward the same goal of bringing sports gaming and the economic benefits it yields to the State of New Jersey”.

Two New Jersey Congressmen have sent a letter to the US House of Representatives encouraging its members to support two bills that would overturn the 1992 “federal prohibition” of sports betting in all states but Nevada, Oregon, Delaware, and Montana.

Congressmen Frank Pallone Jr (pictured, left) and Frank Lobiondo, one of the new sponsors of the Barton bill in California, yesterday sent official correspondence to the House explaining they had developed “two separate, but equally effective, pathways toward the same goal of bringing sports gaming and the economic benefits it yields to the State of New Jersey”.

The New Jersey Betting and Equal Treatment Act of 2012, HR 3081, provides New Jersey with an exemption to “federal prohibition”, the letter explains, allowing state law in New Jersey to determine how sports betting will be regulated within the state.

The second bill, entitled the Sports Gaming Opportunity Act of 2012, HR 3797, would open a window in which states would be able to enact a law providing for sports gambling within their state until January 1 2016, after which the federal prohibition against states allowing sports gambling would go back into place.

“We ask that you join in our efforts to bring sports betting to New Jersey by cosponsoring both H.R. 3809 and H.R.3797. Your support of these two pieces of legislation is an important part of our continued efforts to giving New Jersey an excellent opportunity with tremendous economic benefits that has been supported by the people of the state,” read the letter.

ln 1992 Congress passed the Professional and Amateur Sport Protection Act (PASPA) which prohibits all but four states from allowing sports betting. At the time of passage, said Pallone Jr and Lobiondo, New Jersey was given a period of time in which to enact a law allowing sports gaming but “failed to do so within the one year window”.

Currently, the states with exemptions are Nevada, Oregon, Delaware, and Montana, each of which had some type of sports betting at the time of passage. Nevada currently permits a range of wagering on sporting events.

Pallone Jr (pictured) is keen to introduce legislation on the basis that “New Jersey voted for and deserves a bite of the apple in terms of sports betting.”

Last November the Congressman announced plans to introduce a bill with the aim of excluding the Garden State from federal restrictions on sports betting. This came just days after voters backed plans for intrastate sports betting by a 2:1 margin in a statewide referendum to amend the state constitution and allow sports gaming at casinos and at racetracks.

The State of New Jersey Legislature subsequently passed and Governor Chris Christie signed a law allowing people over the age of 2l to place a bet on a sporting event in-person at special lounges created in casinos, racetracks or at the site of a former racetrack within the state.

The law does not permit wagers to be placed on college games that take place in New Jersey or on any game in which a New Jersey college team participates, regardless of where in the country the game takes place.

Senator Raymond Lesniak, whose online gaming bill S1565 passed out of committee by an overwhelming majority this March and will now move to a full floor vote in the Senate in the next few months, has been attempting to also overturn PASPA for the last three years.

In 2009 Lesniak and state Senate President Stephen Sweeney filed a complaint that the federal restrictions were “unconstitutional”. However in March last year this was thrown out by federal judge Garrett Brown, who stated that the lack of legalised sports betting in New Jersey “puts the cart before the horse”.

In a statement last November, Joe Brennan Jr, director of lobby group iMEGA, noted that “Federal law now directly conflicts with the constitutional will of the people of New Jersey.

“New Jersey’s citizens have voted to amend their state constitution to permit regulated sports wagering. This referendum was a reflection of the most powerful form of change in our government – a purely democratic, majority decision by popular vote,” he added.

Barton bill gets new co-sponsors

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Mark Amodei, Frank LoBiondo and Adam Smith bring total number of co-sponsors to 30.

Joe Barton’s federal egaming bill has received three new sponsors, bringing the total number up to 30.

Two of the three Congressmen joining the list are Republicans, New Jersey Representative Frank LoBiondo and Nevada Congressman and former Senator Mark Amodei. The third, Adam Smith of Washington State, is a member of the Democratic party.

The trio are the first new co-sponsors since another Republican, Ohio Congressman Tim Murphy, got behind HR2366 in February. Other co-sponsors include Barney Frank and John Campbell, whose own egaming bill was introduced last year.

Lobby group the Poker Players Alliance (PPA) has publicly thanked the three new sponsors, with VP of player relations Rich Muny saying: “Why did three more lawmakers just sign onto HR 2366, the Online Poker Act? It is because the poker community stood up, organized, and fought back.”

Don’t bet on Cali bill passing, say tribal groups

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Tribal groups send strong message to delegates at the GiGse conference in San Francisco

Californian tribal leaders have said there is “no chance” online gaming bill SB 1463 will be passed into law in its current form, dashing hopes of a quick route to regulation in the state.

SB 1463 was introduced by Senators Roderick Wright and Darrell Steinberg in February and would allow online poker to be played within the state.

The bill has been well received by many within the industry and is seen to have the political and economic environment to prosper, yet senior tribal representatives speaking at a panel at the GiGse conference in San Franciso yesterday made it clear that progress was a long way off.

The tribal casino community has long been seen as a potential roadblock to online poker regulation, and have voiced concerns about the impact such legislation would have on their land-based operations. Michael Lombardi, chairman of the Gaming Commission, Augustine Band of Cahuilla Indians, said the bill needs to be significantly amended to have any chance of being approved by tribal groups. “All tribes are united on this position. There won’t be an online gambling bill in California if this is the bill. It will not get out of the committee in its current form.”

Senator Lou Correa, who tried and failed with his own online poker bill in 2011, said he believes most interested parties are “converging” on what such legislation should look like and working on a set of compromises. “In politics, you begin to feel the energy when something is about to happen and I feel that now,” he said of the bill.

Yet those feelings were not shared by other members of the panel. Mark Maccarro, chairman of the Pechanga Band of Luiseno Mission Indians, said: “There is no action around the issue; there is no converging of stakeholders. We are waiting for someone to say ‘come to the table and let’s hash this out’.

“Tribes are one quarter of the gambling industry and until folks get the opportunity to come together and make significant compromises, no forward progress is possible.”

His sentiment was backed up by Leslie Lohse, chairwoman of the California Tribal Business Alliance. Lohse said the tribes were being “very cautious” about being “herded along” with the legislation.

“What we do today will impact those [generations] beyond us. We are not just saying no to be obstinate or cut ourselves into the action, but it cuts at the very core at where we are able to generate our dollars to take care of our roads and fund health clinics. We need to have these tax dollars.

“We’re not saying it’s the wrong thing to do but we need to make it sustainable for our future. Don’t place your bets on 1463,” she said.

Everest Poker poised to enter Massachusetts

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Everest Poker announces plans following state’s internet poker bill introduction

Everest Poker hopes the recently introduced internet poker bill by Massachusetts Representative Dan Winslow will provide the operator with an avenue into the US intrastate market.

Everest Poker, which claims to be the only European-facing online poker operator with an office in Massachusetts, communicated with Rep. Winslow during the drafting process and, according to a statement, believes the amendment strikes the proper balance between “rigorous oversight and creating a sustainable market”.

Everest Poker exited the American egaming market after UIGEA was passed in 2006, and a US online gaming licence would be a welcome move for the operator, which saw significant losses in 2011.

CEO of Everest Gaming, Tim Dent, said: “Rep. Daniel Winslow’s recent internet poker amendment to the Massachusetts casino law is a very positive step forward for online operators, like Everest Poker, that have scrupulously respected US law.

“The bill presents Massachusetts with a great opportunity to be a pioneer in legalising internet poker in the US, and there’s no question that Everest Poker is better positioned than any other operator to take advantage of that opportunity,” Dent added.