2. State-Federal Relations Committee- Internet Gaming
New Administration…New Outlook? - New DOJ’s treatment of Wire Act…will the states pursue intrastate online gaming and how will they proceed?...Updates on CA,PA and other states considering authorizing iGaming…Lessons learned from DE,NJ,NV
Joe Carlon
Senior Manager - GLI

3. 21 Global Locations Lakewood, N. J. World Headquarters Moncton,
Canada.
Madrid,
Spain
Barcelona,
Spain
Hillegom,
The Netherlands
Graz,
Austria
Krakow,
Poland
Bologna,
Italy
Vancouver,
Canada
Wheat Ridge, CO
Macau,
China
Las Vegas, NV
Manila,
The Philippines
Mexico City, Mexico
Sydney,
Australia
San Juan,
Puerto Rico
Lima,
Peru
Buenos Aires,
Argentina
Midrand,
S. Africa
Adelaide, Australia
Melbourne, Australia

4. Interactive Gambling is Not New
1995 – First legalized sites
1996 – Online sports books
1997 – More than 200 online casinos
1998 – Online revenues $830 million
1999 – Online poker tournaments
2000 – Betfair enters the market
2002 – In-game sports wagering
2006 – 7.2% of UK adults play online
2006 – Congress passes UIGEA
2010 – 10.7% of UK adults play online
2011 – U.S. “Black Friday” shuts down sites taking bets from U.S.

5. Interactive Gaming in Europe

6. Interactive Gaming in Canada

7. United States Regulated Internet Gaming
NEW JERSEY

8. Existing Casino Gaming Networks

9. Modernizing the Delivery of Gaming Content

10. iGaming & Shared Liquidity Considerations
Server Locations
Primary
Backup
Safe
Reciprocity
Change Management
Emergency Rule Coordination
Jurisdictional Critical File Differences
Supported Financial Products
Cash Deposit/Withdrawal
ACH
Debit and/or Credit Card Support
PayPal, Neteller, PayNearMe, … DE NV
Shared components

11. iGaming & Shared Liquidity Considerations
Revenue Management & Allocation
Poker Example
Taxation
Geolocation for Revenue Accounting
Non-anonymous Play
AML and Know Your Customer (KYC)
Customer Data Protection
AML protections
Fraud management
3rd party services
Dispute resolution

12. iGaming & Shared Liquidity Considerations
Geolocation
Revenue Reporting
Compliance
Multiple Technical Solutions
Intentional Subversion
Allowed Game Types
Traditional Slot & Casino
Peer to Peer Poker/Bingo
Skill Games
Sportsbook
Live Dealer
DFS
eSports ….

14. Questions?

15. Thank you! www.gaminglabs.com Joe Carlon Senior Manager
(303)

17. Princeton Public Affairs Group, Inc.
NCLGS’s state & federal relations committee – internet gaming, new administration…new outlook?
A presentation by:
William J. Pascrell, III
Princeton Public Affairs Group, Inc.

18. gaming nationally 48 States Nationally Allow Forms of Gaming
Horse Racing, Lottery, Dog Racing, Casinos, Daily Fantasy, Poker Rooms, etc.
Hawaii and Utah
Nationally, the state of gaming remains very healthy. Across the board, gaming revenues increased by $73.1 billion, an increase of 2.0% from 2015.
Commercial Gaming lagged in growth, only growing by 0.9%
Tribal Gaming saw an increase in revenues of 2.6%
Limited Stakes Gaming saw the largest increase – 7.1%

19. internet gaming National Revenue New Jersey Delaware Nevada
2016 Revenues - $212.2 million
New Jersey
Enacted in 2012
2016 Revenues - $196.7 million
Delaware
Enacted at the end of 2013
2016 Revenues - $3.02 million
Nevada
Enacted on April 30, 2013
2016 Revenues - $12. 5 million
National – With three states authorizing online gaming, internet gaming experienced a growth rate of 32.1%. New Jersey remains a leader in the field, that has provided a sustainable and viable option for those unable to travel to casinos.
New Jersey: Signed into law by Governor Christie in 2012, internet gaming continues to provide a viable option for consumers looking to gamble remotely.
Regulated online gaming saw an increase in revenues of 32.1% since 2015 from $148.9 million to $196.7 million
Delaware: Enacted under the watch of Jack Markell (D), Delaware’s internet gaming brought in $3.02 million for fiscal year 2013.
Nevada: Signed into law and launched in 2013 under Governor Brian Sandoval (R), internet gaming was authorized for poker only.

20. Pending Action on internet gaming
New York
S03898/A05250 (Bonacic/Pretlow) – Allows internet poker to be classified as a game of ‘skill’
S03898 has been referenced for third reading
A05250 has had no action
Illinois
HB479 (Rauol/Zalewski) – the Internet Gaming Act.
Introduced and referred to the House – No Action
Pennsylvania
HB271 (Ortitay/Brown, V.) – Provides for the regulation of Daily Fantasy Sports and Internet Gaming
Passed both the Senate and House
New York – S03898 has been referenced for third reading. A05250 has not been heard in any committees.
15% sales tax on internet gaming
Reclassifies poker to be a gaming of skill
Illinois – HB479 was passed by the Senate with a vote of on May 31, The bill has been referred to the House, but no action has been taken yet.
The bill would place a tax, between 5-15% on all internet gaming revenues
Pennsylvania – HB271 was passed by the House (142-56) on April 4, 2017 and the Senate (38-12) on May 24, The bill will impose a 345 on all i-gaming revenues.

21. Daily Fantasy sports regulations
31 States – Have Implemented or are Seeking Regulations of DFS
Bans – 5 States – AZ, IA, LA, MT, and WA
Allowed – 12 States – IN, KS, MD, MA, RI, VA, CO, MO, AK,MI, TN, and NY
Pending Regulations to Allow – 14 States – OR, WA, NE, MI, IL, OH, NJ, PA. NC, CT, RI, VT, NH, and ME

22. sports betting NFL vs. Chris Christie II
Solicitor General Noel Francisco
Letter Advising Courts Take on Case
‘Well, what I’d do is I’d sit down with the commissioners. I would be talking to them, and we’ll see how they feel about it…I’d also get the input from lots of law enforcement officials, because, obviously, that’s a big step.’ – President Trump (Feb. 5, 2017) \

23. GOVERNOR RACES - 2017 Current Breakdown Two Races for Governor in 2017
33 Republicans v. 16 Democrats v. 1 Independent
Two Races for Governor in 2017
New Jersey
Governor Chris Christie (R)
Virginia
Governor Terry McAuliffe (D)

24. GOVERNOR RACES - 2018 36 Gubernatorial Races in 2018
28 Republicans v. 9 Democrats v. 1 Independent

25. State Legislatures - 2017 Republican Controlled Legislatures
32 States Feature Both Chambers with Republican Majorities
Democratic Controlled Legislatures
14 States Feature Chambers Both with Democrats Majorities
3 Legislatures Feature Split Chambers
State Races in New Jersey and Virginia

26. Senate Elections - 2018 November 6, 2018 33 Elections:
23 Democrats, 8 Republicans and 2 Independents

27. Analysis on Trump Administration on Gaming
Increased Optimism for Gaming
Future Outlook for the Industry

28. Challenges to the internet gaming industry
Cohesion and building a unified message
Unified standards and practices
Industry is growing
Compliments brick and mortar industry

29. Thank you!