Cross-border Agreements Another Option for States

Posted on September 12th, 2013 by Todd Wilkins

Cross-border Agreements Another Option for StatesU.S. poker players who are worried that legalized online poker may not be coming to their state have reason for hope with cross-border partnerships.

As is plain to see, the legislative and licensing process that Nevada, Delaware and New Jersey are going through to operate online poker and gambling sites within their borders is a long and tedious one. The time and energy put forth first by lawmakers in enacting legislation and then by gaming officials in making sure that the regulations are adhered to is a herculean task fraught with problems.

One need look no further than Nevada to see that delays in licensing and software testing are inevitable. It’s not easy to get lawmakers to agree on legislation, have gaming officials thoroughly investigate the companies applying for a gaming license, and oversee a testing process that will likely have numerous bugs upon launching despite efforts to avoid such misfortune.

For this reason, it is highly likely that some states will refrain from entering the Internet poker and gambling regime that the trio of regulated states are currently embarking upon. Those unwilling states may not become players in online gaming, but there is an option available that will permit their residents to legally play poker and casino games online.

That option would be to enact rather simple legislation that would allow citizens of their state to play at any of the states that have gone through the rigamarole of legalizing and setting up the operations of online gambling sites. Such cross-border agreements would benefit everybody, adding liquidity and revenue to to the states running online poker sites, as well as permitting a revenue-sharing agreement with states sending players over the cyberspace border.

These agreements would not be compacts, but instead a cross-border partnership of sorts. Whether or not its exclusive between two states will depend on the type of agreements brokered. However, if the players themselves were allowed to have a say, it’s likely that most would prefer as many choices as possible on where to deposit and play.

Nevada, Delaware and New Jersey are certainly breaking new ground in U.S. online gambling. A number of other states such as California, Illinois and Pennsylvania are almost certain to follow that up with online poker and/or gambling legislation of their own sometime in the future.

But a number of smaller states could benefit greatly by enacting cross-border legislation with the larger states that are willing to go all the way with Internet gambling regimes from within their borders. It’s a workable solution that would permit online poker and gambling to spread throughout the U.S. much more quickly than if every state were to take the time, effort, and expense to set up their own online gambling sites.


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