MGM Resorts is still weighing the pros and cons of launching an online poker site in the newly opened Nevada gambling market.
One of the top entertainment groups in the United States, MGM Resorts International has said that, contrary to market expectations, it may not launch an internet poker site in Nevada. The group’s Chief Financial Officer, Dan D’Arrigo said in an interview that the local market’s small size may not justify MGM’s entry at this point.
In the interview, D’Arrigo said that MGM would need to make an in-depth assessment on the costs required to operate in Nevada. He said that while MGM Resorts has not actually ruled out the idea altogether, its financial team hasn’t given the plan the go-ahead either.
We’re not going to be the first or a pioneer from the state’s perspective, he said.
More States Need to Regulate Online Poker
According to the CFO, for a truly viable online poker and gambling market to evolve in the United States, more states would need to regulate and legalize their gambling industries, over and beyond the current states of New Jersey, Nevada and Delaware. His opinion is that significant changes need to be made on a federal level or via state compacts in order to increase liquidity and attract a larger number of internet gamblers.
MGM Resorts and other larger gambling corporations would be receptive to the idea of federal regulations as they avoid the problem of what has been termed
patchwork regulation on a state by state basis. It would also create standards of uniformity when it comes to issues such as taxation.
D’Arrigo said that operating on a state by state basis was more challenging and complicated for corporations since the opportunities differ in each state. He said that the second best scenario would be for states to join with one another to not only create liquidity, but also uniformity in standards.
The CFO believes that if state compacts are created, Nevada would come out a natural leader as the state has many years of experience in gambling regulation.