Republican John Bonacic Supports Online Poker in New York
A state senator from New York, John Bonacic, wants to legalize, license, and tax Internet poker in his state. Under his plan, 10 different licenses would be issued for online poker sites. Each of these operators would pay a $10 million licensing fee, along with a 15% tax on gross revenues.
The New York State law would affect online poker only. Online casino table games and sports betting would continue to be illegal. The games allowed would be poker favorites like Texas hold’em, Omaha hold’em, and seven-card stud. Tables games based on poker hands, such as Caribbean stud poker, three-card poker, and Let It Ride would not be legal.
Protections for Younger Gamblers
Special regulations would require online poker sites to take steps to prevent anyone under the age of 21 from using their card rooms. Also, resource for compulsive or problem gamblers would be made available in the virtual poker rooms.
An iPoker law is still a long way from being passed, despite Bonacic’s introduction of a bill to the New York State Senate. At present, no companion legislation exists in the State Assembly. For a law to be passed, politicians in the State Assembly would have to vote through a counterpart bill.
John Bonacic Background
The bill’s champion has significant political clout in his legislative body. John Bonacic is a Republican state senator who assumed office in 1999, making him a mainstay of 15 years in the upper house of New York politics. He heads the Racing, Wagering and Gaming, while acting as the chairman of the Housing Committee and co-chairing the Health & Welness Committee.
State Senator Bonacic says he does not expect the legislation to be passed this year. When asked for a timeline, Bonacic said he wants to see how the four approved land casinos will effect the people of New York first. It appears the bill’s champion is therefore willing to wait until 2015 at least to push an online poker law through the legislature.
Bonacic added, “I don’t intend to push this this year. But we need to start a discussion.”
The Republican state senator went on to say that the more acceptable post-2011 legal status of online gambling requires New Yorkers to discuss their reaction to the new realities. Other states already have legalized online gambling and are therefore pushing the agenda, so the people of New York need to define their stance on iGaming. If they support it, the state should be collecting revenues on activities which are happening outside the law.
MGM Resorts Receptive to Legislation
While it is too early to know if local brick-and-mortar gaming interests will support such a bill, at least one national gaming company has shown major interest in entering the New York market. MGM Resorts is a major operator in Las Vegas and Atlantic City. The company has online poker sites and casinos operating in the New Jersey market since November 2013, when New Jersey laws allowed licensed online gaming.
MGM Resorts International President Bill Hornbuckle said in a public statement, “New York would be an extraordinary market for this type of entertainment. We are excited by the opportunity to offer online poker to New York players and will pursue it aggressively.”
Federal Ban Could Squelch New York iGaming
Not all such companies are as enthusiastic. The Las Vegas Sands Corp is the largest gaming company in the world. It owns the Venetian and Palazzo in Las Vegas, along with the Venetian Macao Resort, which collects the largest single amount of gaming revenues in the world each year.
The Las Vegas Sands Corp CEO, Sheldon Adelson, has vowed to spend whatever money is necessary to see a comprehensive ban on online poker and casinos throughout the United States. Adelson believes online gambling encourages problem gambling in a particularly virulent form, while his land-based gaming venues are more responsible in dealing with gambling addicts.
Last week, Sheldon Adelson entertained Republican presidential hopefuls in Las Vegas, as they hoped to inspire political contributions for their run at the presidency in 2016. Adelson spent $90 million on a failed effort to see Barack Obama defeated in his 2012 reelection bid. Recently, Adelson’s efforts inspired U.S. Senators Lindsey Graham and Jason Chaffetz to introduce Restoration of the Wire Act, which would ban all online gambling in the USA, except safe forms of gambling, like horse racing, lotteries, and fantasy sports betting.
If such a law were passed, the John Bonacic’s efforts in New York state would be for naught.
