Nevada online poker hopefuls to hear fate
IGT, Bally and William Hill applications to be heard in front of Gaming Commission later today.
The first licences to provide online poker in the US could be awarded later today as IGT and Bally Technologies’ applications are heard by Nevada’s Gaming Commission.
In the same hearing, set to start at 10am PST, British bookmaker William Hill will also learn whether it will be able to operate both on and offline in the Silver State while a positive outcome would also allow the UK company to complete its acquisition of three Nevada-based sportsbooks.
Earlier this month Bally became the first company to receive approval to supply online poker from Nevada’s Gaming Control Board (GCB), followed shortly after by IGT. The GCB’s backing, after months of suitability investigations, is likely to result in the Nevada Gaming Commission following suit.
The two gaming machine manufacturers have long been preparing a B2B online poker product. Bally acquired the B2B assets of French operator Chiligaming in February including its iGaming platform, while IGT purchased poker network Entraction last year “ since renamed IGT Poker “ and paid up to US$500m for social game developer Double Down in January.
Following approval by the Gaming Commission, both companies will face stringent testing of their technology and systems which will take place towards the end of this year and into the first quarter of 2013. The GCB’s chairman, Mark Lipparrelli, told eGaming Review earlier this year that “the better [applicants] prepare their systems, the quicker they will get through the process and be able to start operating”.
Since Nevada passed online poker regulation in 2011, Lipparrelli has been confident that real-money, intrastate online poker could be up and running by the end of this year.
With a population of just 2.7 million, Nevada is unlikely to bring instant riches to those who obtain a licence, but the state is viewed as the first entry point to a regulated US market which, according to data specialists H2 Gaming Capital, could be worth as much as $3bn by 2015. Several other states, including California and New Jersey, have attempted to pass similar legislation and are at various stages in their endeavours to push through egaming bills, however both face numerous political hurdles.
Meanwhile William Hill will hope for good news today concerning its suitability to operate in Nevada. Approval would mean it could complete the US$55m worth of deals to acquire three Nevada-facing sportsbooks it struck last year.
It made its first foray into the US market when it agreed to buy American Wagering Inc for US$18m in April last year. AW operates 72 sportsbooks and kiosks under the Leroy’s brand. The following month saw Hills agree a deal to acquire Nevada and Delaware-based sports betting company Brandywine for $14.25m. The bookmaker also agreed to pay $21m to casino and hotel group Sierra Development Company for the Cal Neva Sportsbook Division which runs 31 sportsbooks in the Silver State.
Approval today would see Hills create a Nevada-based subsidiary William Hill U.S. Holdco Inc., under which land-based, online and mobile operations will be consolidated.
Hills’ application has been hindered by the GCB’s extensive investigations into its joint venture with Israeli gaming supplier Playtech, along with probes into associated personnel including head of strategy and corporate development Robin Chhabra.
According to reports in The Guardian, former equity analyst Chhabra was fined £95,000 by the UK’s Financial Services Authority in 2010 for passing confidential information to a friend.
Hills CEO Ralph Topping had previously told shareholders the licensing process would be completed by the summer.
More than 30 gaming operators and service providers have applied for licenses in Nevada, including the likes of Caesars, Boyd Gaming and MGM Resorts, who will hope to see their names on the GCB agenda in the coming months. Casino operator Wynn resorts and AIM-listed software provider Playtech were the latest companies to submit applications.
eGaming Review will have an updated story, including an exclusive interview with William Hill group chief executive Ralph Topping, on the outcome of today’s Nevada’s Gaming Control Board meeting, at around 11pm GMT.