The approval last week by the Nevada Gaming Control Board of a partnership by Caesars Entertainment with subsidiaries of 888 Holdings does not mean that true Internet gambling is coming to Nevada, at least not yet. But the approval by regulators of the deal between the giant land-based casino operator, which also owns the World Series of Poker, and what was at one time the largest online poker site, shows which way the wind in blowing.

The leaders in the race to be first back in the U.S., this time with an American license, seems to be between Caesars (formerly Harrah’s) with its WSOP, and Bwin.party digital entertainment, the awkward new name for the entity born from the Party Gaming-Bwin merger, with its World Series of Poker. The wild cards are PokerStars and Full Tilt Poker, which are lobbying hard, but face the obstacle of being seen as law-breakers for still taking bets from the U.S.

Of course, this all assumes that licensed online poker is coming to the U.S., either by act of Congress or, more likely, by state by state legalization. The leading states for legalization by the legislatures are Iowa, California and Florida, with New Jersey probably having it on the ballot in November.

I did not put Nevada on the list, because it already has made Internet gambling legal. A bill has been introduced to require state regulators to issue regulations for online poker. But, the Nevada Legislature already has passed two statutes legalizing all Internet gambling, except sports betting. These are law in the Silver State, but the regulators were scared out of issuing the enabling regs. by the federal Department of Justice.

The latest move by the NGCB is being downplayed by the regulators. They assert this is mostly to allow Caesars to operate Internet gambling in other countries. But, although Caesars did need Nevada’s approval before forming a partnership, it already had the right to offer online gaming abroad. In fact, MGM had an Internet casino licensed by the Isle of Man.

Internet poker sites are acting as if the question of licensing is merely when, not if. PokerStars hired former Nevada Assembly Speaker Richard Perkins as its legislative lobbyist. Not coincidentally, the new Nevada bill would expressly prohibit denying a license to an operator who is now taking online poker bets from the U.S. While Caesars pushes for state-by-state legalization, MGM is lobbying against, while fighting for a federal law.

And the operators are not ignoring the regulators. Howard Stutz’s Inside Gaming reported yesterday that PokerStars has hired former NGCB member Randy Sayre, a well-known advocate of strict regulation. The obvious message to regulators is that even though this company is still taking bets from Americans, it actually favors being licensed and regulated.

So the Nevada Gaming Commission will decide on March 24 whether Caesars can work with 888. This would be the first time Nevada regulators approved a partnership between one of their licensees and an Internet gambling company. But it will not be the last. (E-03.15.11)


I. NELSON ROSE

© Copyright 2011. Professor I Nelson Rose is recognized as one of the world’s leading experts on gambling law and is a consultant and expert witness for for players, governments and industry. His latest books, INTERNET GAMING LAW (2nd edition recently published) BLACKJACK AND THE LAW and GAMING LAW: CASES AND MATERIALS, are available through his website, www.GamblingAndTheLaw.com.