Wall Street Hedge Fund Manager Bets Against Online Poker Legislation in 2012

Submitted by Aaron Goldstein on

Written by :

Aaron Goldstein

Published on :

Managing member at KIF Capital Management, Ken Frankel, laughed off the idea that so many in the Internet poker community believed Senate Majority Leader Harry Reid would come through as a white knight last week. 

From Business Insider:

Proponents of internet poker seem unable to grasp Politics 101.  It is amazing that there was even speculation about attaching poker legalization to a bill to extend payroll tax cuts and unemployment benefits. The Democrats were happy the Republicans were willing to pass it without asking for spending offsets. There was no way they would jeopardize passage by placing anything controversial into the bill. It does not matter that Senate Majority Leader supports the concept or that the leading Senate opponent of internet gambling for years Senator John Kyl of Arizona is now amenable to it. It still needs to get past the Republican controlled House of Representatives that is more socially conservative than any House majority in history.

Frankel makes some interesting points.  But he also asks the multi-billion dollar question:  Does federal legislation of Internet poker really matter?

After all, it now appears that individual states are moving forward with plans to legalize the activity on their own turf while considering multi-state platforms that essentially provide a much more viable player pool (i.e. Iowa would be more than happy to act as a hub for other Midwestern states). 

How important is Nevada legalizing online poker? Not as important as some will have you believe. Most of the population of the State lives in Clark County (Las Vegas) and Reno, which both have plenty of live poker games minutes from people’s homes. Without the ability to play people in other states and countries,   it is doubtful there will be a sufficient number of “fish” (less than optimal players) to keep the games going. The only market will be online pros playing each other and that won’t last.  I have heard theories of many online poker players moving to Nevada if online is legalized, but to play whom? If they live in Vancouver, they can play people all over the world, they are going to move to Las Vegas so they can play 10 people in Elko?

On top of all of this both Indian tribes with casinos and state lotteries oppose federal legalization efforts. The Indians have more political influence than the commercial casino operators like Caesars and MGM.

Aaron Goldstein, Gambling911.com

Related Content

Evoke

William Hill UK Owner Evoke Weighs $304 Million Takeover Bid From Bally's Intralot

Betting group Evoke (EVOK.L), opens new tab, owner of William Hill UK and 888, is evaluating a takeover proposal from Greek lottery and gaming firm Bally's ​Intralot (BYLOTr.AT), it said on Monday, valuing the debt-laden UK company at ​225.3 million pounds ($303.88 million).
FanDuel

Fanduel Begins Offering Injury Protection Insurance

FanDuel becomes first book to offer the full game injury insurance but some experts in the field suggest it is predatory.
Cha-ching

Sacramento Casino Pays Gambler $142,327 on a $5 Side Bet

German Rangel won the life-changing jackpot while playing Bonus Spin Xtreme Triple Diamond Progressive near the end of his visit to the Elk Grove casino on April 11, the casino said in a Friday news release.
Bitcoin

Real Bitcoin Casino Reviews: Winshark, NeoSpin, SkyCrown (April 2026)

Those crypto casino reviews you read on the Net are often affiliate-based or submitted by individuals paid on behalf of said casino operators. Here, at Gambling911.com, we cut through the crap and bring you real customer reviews.