Internet Gambling Attorney Sees Legal Online Gambling Coming to All 50 States
Stuart Slotnick Says It’s a “Good Revenue Model”
In 2010, British online gambling company Sportingbet PLC (www.sportingbet.com) paid the U.S. government $33 million to settle a prosecution for illegally accepting online wagers for years from U.S. residents.
The landmark settlement, brokered by Sportingbet attorneys Stuart Slotnick and his father, Barry, was viewed as a huge success by the Internet gambling firm because no Sportingbet officials went to prison and the firm was allowed to stay in business and continue offering wagering to the rest of the world.
Most importantly, the $33 million fine was just a fourth of what competitor PartyGaming had to pay in a similar prosecution.
Since the Sportingbet settlement, a lot has happened in the online gambling industry, especially as it pertains to the legal situation in the USA.
In 2010, online gambling wasn't legal in any U.S. state.
Now it is legal in three--Nevada, New Jersey and Delaware--with more likely to come and soon.
So with the industry in such a state of flux, Gambling 911 took the opportunity earlier this week to catch up with Sportingbet attorney and online gambling expert Stuart Slotnick, of the New York law firm Buchanan Ingersoll Rooney PC (www.bipc.com), for his views on where the industry is headed.
Here is a transcript of that interview:
Gambling 911: You represented Sportingbet in its now-famous case against the U.S. government four years ago. How do you see the online gambling industry today and in the future?
Stuart Slotnick: With the passing of every day, we get closer to legalization of various forms of Internet gaming. Certain states have already legalized some Internet gaming intrastate, meaning within that state alone. Other states will look at the current, legal, state-based Internet gaming and say this is a good revenue model and they will follow suit. Ultimately, we think that the Federal government will follow suit as this becomes more accepted nationwide, and Internet gaming, at least for various casino games, is expected to be legalized with restrictions and taxes and a model that will be beneficial for the government and their tax-collecting abilities.
G9: Since the Sportingbet case, three U.S. states have legalized Internet gambling. Do you eventually see it being legalized in all 50 states, and how long do you think that will take?
SS: As time passes, the number of states that permit intrastate Internet gaming will increase. We see that many years ago the number of states that allowed Internet gaming was zero. Now we have a small handful. We know that there are other states that are in the planning stages. And it will increase when states look at their neighbors and say why are they receiving all this revenue from Internet gaming? Those states will look at it and say let's implement a responsible gaming protocol so that those in our state can gamble and we can collect taxes from the gambling.
G9: The states that have legalized online gambling--Nevada, New Jersey and Delaware--have legalized online poker and other online casino games such as blackjack and roulette, but not online sports betting. Do you think online sports betting will eventually be part of legal online gambling?
SS: I think that as an initial matter, sports betting will not be legalized as various municipalities open their arms towards Internet gaming. However, I think eventually sports betting will be legalized, but it's not one of the first forms of Internet gaming that will be accepted or favored by the various municipalities.
G9: New Jersey is currently trying to get legal sports betting at its casinos and racetracks. Do you think that will succeed?
SS: I think that ultimately it will happen.
G9: Years ago, the U.S. Congress passed a law banning sports betting in any state that didn't have it already, which meant only Nevada and a few other states could offer it. New Jersey was not one of the states grandfathered in. That seems unconstitutional, the Federal government allowing some states to engage in a specific legal activity but not others. Do you think that if this law is challenged and eventually lands in front of the U.S. Supreme Court, it will be ruled unconstitutional?
SS: It would be kind of hard for me to comment on a case that hasn't been brought yet.
G9: All right, that's fair enough. But do you know of any other examples where the Federal governement allows some states to allow an activity but not other states?
SS: Not offhand.
G9: Finally, what is going on with the Calvin Ayre case? Ayre, the founder of online gambling site Bodog, now called Bovada, was charged by the U.S. government in 2012 with various Internet gambling offenses. You and your dad are handling his defense. Is he going to walk?
SS: I'm sorry, but I can't comment on a client.
By Tom Somach
Gambling911.com Staff Writer
