December was a busy month for those following online gambling laws in the U.S. Two notable events occurred almost back to back, both with serious and, some say, positive implications for the country's economy, its gamblers and the gaming industry in general.

One of the month's notable events occurred when the state of Nevada approved legislation to legalize intrastate online poker. The vote to approve, which was passed unanimously by Nevada's lawmakers, makes the state the first in the U.S. to allow its residents to play poker without penalty.

A number of regulatory factors must be met in order for poker websites to receive a license to operate. Among these are the verification of players' ages and locations and a cash reserve equal to the sum of player deposits, but if operators can sufficiently satisfy the Nevada Gaming Control Board's requirements, it's expected that Nevada online poker will be a reality by the end of 2012.

The other notable event was the U.S. Department of Justice (DOJ) announcement that online poker is not covered under the Wire Act of 1961. Initially established as anti-racketeering legislation, the Wire Act has long been a bone of contention in the U.S. online gambling argument. Does it or does it not cover online poker?

The DOJ answered that question when it plainly stated that online poker is not covered under the Wire Act. According to U.S. Deputy Attorney General, James Cole: "The Department's Office of Legal Counsel has analyzed the scope of the Wire Act and concluded that it is limited only to sports betting."

The Nevada passage and the DOJ announcement are good news for proponents of legal online gambling in the U.S., and have caused a wave of reaction among states who are hopeful that they, too, can pass legal online gambling legislation (though most are thus far concerned with online lottery ticket sales).

Below is a brief synopsis of what is happening with regard to legal online gambling in a few of the most visible and vocal U.S. states.

CALIFORNIA
Following the Justice Department's determination that online sales of lottery tickets would not violate federal law, the state's lawmakers are looking into the possibility as a means of closing the state's large budget deficits.

"It does open up a major potential channel for lottery sales in California, but right now it's just a potential channel," said Robert O'Neill, head of the California state lottery.

O'Neill went on to say that the California lottery would not consider online poker at this point.

MASSACHUSETTS
Last summer, State Representative Daniel Winslow authored an amendment to make poker legal in Massachusetts. It received house House support but stalled in the Senate. Winslow is hoping that the recently rendered DOJ opinion will now help to push the amendment through.

Said Winslow: "Internet poker is a $10 billion-a-year industry, and it’s taking place entirely offshore. If Massachusetts doesn’t pursue this option, we’ll be leaving money on the table.”

ILLINOIS
According to Michael Jones, Superintendent of the Illinois State Lottery, the DOJ ruling could mean "hundreds of millions of dollars a year" in revenue. Jones said he expects to sell Powerball, MegaMillion and Lotto tickets online "by the end of March or early April," with full sales targeted for late 2012.  

The Illinois state lottery has the favor of state residents. Though only 8% to 12% of adults play the lottery each week, 80% said they supported the lottery. Jones believe many more people would buy tickets if they could do so online just before the drawing of a large MegaMillions or Powerball jackpot.

"This is a perfect ... progression for any lottery because it's adapting to new consumer buying habits and new technologies," says Jones.

UTAH
In the wake of the DOJ opinion, Utah State Representative Stephen Sandstrom announced that he is drafting an anti-internet gambling law aimed at prohibiting online poker and gambling in the state.

The Republican Representative said on his website: "We want to keep Utah free from the negative impacts of legalized gambling. Many gambling critics see the DOJ’s recent interpretation as another major crack in America’s moral foundation.”

He may be getting riled up without reason. Industry insiders are generally agreed that any future U.S. online poker legislation will include laws allowing individual states to "opt-out" of approving online gambling.
 

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