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Jake

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Jul 7, 2012, 8:19 am

As put out on the AP wire this past week and reported locally in Delaware, Gov Markell signed the bill that allows Delawareans to gamble online. They say we will be the first to offer this service. I am misinformed as I thought it was already a done deal in some other states.

According to what we are being told, it will be operated by the DE Lottery, who will have the ability to offer table games and video lotteries over their website. I cannot clarify exactly what table games and video lotteries break down to, and I have not read the actual bill.

I do know that it cannot happen until a system has been devised that verifies without question that a player is in the State and verifies the identify of a player. One unclear distinction - I believe if you are visiting DE and can verify your identity and that you are within the state, you will be allowed to participate. Boy, would I not want to be in charge of this part of the play. How exactly do you card someone online?

No idea exactly when it's going to fly but given the challenges I see in the development process, I'd bet a while. Maybe some other LP players already have insight in their home states. I would imagine it will make the LP News when DE actually comes online. I was one of the very first people through the door when they opened the slots in Dover eons ago (and I have my original in-the-mail numbered players card to prove it) and , knowing me, I'll be there at least to look around online. J
maximumfun

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Jul 7, 2012, 11:14 am

you can play if you are a state member or if you are vising the state and can prove you in in the borders? yikes... if they put those controls in place they will be used for much more than lotteries... and for not just delaware...that would in effect allow an electronic collar on everyone pinpointing their locations and allowing for states to have closed or open borders.

i am not sure i like this type of system rolling out... even if it is being rolled out under the guise of the 'lottery'... sounds much more like ultimate control/power than a lottery move...and that they are couching it under a lottery rubric.
Stack47

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Jul 7, 2012, 4:59 pm

Quote: Originally posted by maximumfun on Jul 7, 2012
you can play if you are a state member or if you are vising the state and can prove you in in the borders? yikes... if they put those controls in place they will be used for much more than lotteries... and for not just delaware...that would in effect allow an electronic collar on everyone pinpointing their locations and allowing for states to have closed or open borders.

i am not sure i like this type of system rolling out... even if it is being rolled out under the guise of the 'lottery'... sounds much more like ultimate control/power than a lottery move...and that they are couching it under a lottery rubric.

It's been illegal for residents of some states to gamble online for years and other states passed legislation against online gambling after the Unlawful Internet Gambling Enforcement Act of 2006 became law.

"i am not sure i like this type of system rolling out."

Online gambling began in 1994 so it's hardly anything new. It's been legal to bet on horse racing online in the U.S. and in Kentucky for many years, but illegal to bet on other forms of online gambling in KY. Call it hypocrisy, but it's still nothing new.

Since the Justice Department has changed their legal opinion of the Federal Wire Act of 1961, many states are beginning the process of creating online gaming sites, but for now will be restricted to state residences because online gambling is illegal in some states. When Illinois began selling PB, MM, and Lotto tickets online, it was restricted to Illinois residences and why Delaware is restricting their version of online gambling to its residences.

Just by opening an account with an online horse betting site or one of the states that offer instate online gaming, the players are allowing the sites and the IRS to monitor their play. If it is a "control/power move, the players are agreeing to it. For those not interested, continue to do your gambling the traditional way.
Lucky Loser

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Jul 9, 2012, 8:19 pm

Quote: Originally posted by Stack47 on Jul 7, 2012
It's been illegal for residents of some states to gamble online for years and other states passed legislation against online gambling after the Unlawful Internet Gambling Enforcement Act of 2006 became law.

"i am not sure i like this type of system rolling out."

Online gambling began in 1994 so it's hardly anything new. It's been legal to bet on horse racing online in the U.S. and in Kentucky for many years, but illegal to bet on other forms of online gambling in KY. Call it hypocrisy, but it's still nothing new.

Since the Justice Department has changed their legal opinion of the Federal Wire Act of 1961, many states are beginning the process of creating online gaming sites, but for now will be restricted to state residences because online gambling is illegal in some states. When Illinois began selling PB, MM, and Lotto tickets online, it was restricted to Illinois residences and why Delaware is restricting their version of online gambling to its residences.

Just by opening an account with an online horse betting site or one of the states that offer instate online gaming, the players are allowing the sites and the IRS to monitor their play. If it is a "control/power move, the players are agreeing to it. For those not interested, continue to do your gambling the traditional way.

This may be true, but the same regulations in terms of winnings must still apply. A player can still win up to $599 and not have to worry with taxes. This is where one can get very creative with how they play and win without worrying about all the ramifications associated with gambling. There's also way more flexibility in terms of strategical applications for a player. I don't think the IRS is worried at aall about online players because there will always be more than enough traditional players that lose and keep thing flowing smoothly...no pun intended. This is especially true with the larger lottery games like our 6/54, Cash 5, PB, MM's, and the scratch-offs.

You can't offset the income from those games with anything online...PERIOD. On another note, the UK offers the best online scratch-offs, card games, and slots around but the US is restricted from them. When they say that every third card is a winner, THEY MEAN JUST THAT. Those people do it BIG over there, and, like their players to win. This could become a very interesting conversation, but I'll stop here.

L.L.
Stack47

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Jul 10, 2012, 12:12 am

Quote: Originally posted by Lucky Loser on Jul 9, 2012
This may be true, but the same regulations in terms of winnings must still apply. A player can still win up to $599 and not have to worry with taxes. This is where one can get very creative with how they play and win without worrying about all the ramifications associated with gambling. There's also way more flexibility in terms of strategical applications for a player. I don't think the IRS is worried at aall about online players because there will always be more than enough traditional players that lose and keep thing flowing smoothly...no pun intended. This is especially true with the larger lottery games like our 6/54, Cash 5, PB, MM's, and the scratch-offs.

You can't offset the income from those games with anything online...PERIOD. On another note, the UK offers the best online scratch-offs, card games, and slots around but the US is restricted from them. When they say that every third card is a winner, THEY MEAN JUST THAT. Those people do it BIG over there, and, like their players to win. This could become a very interesting conversation, but I'll stop here.

L.L.

You'll get a W-2G playing online too and if the lotteries are set up like the horse racing books, the yearly play is tracked and players can use it to deduct any losses up to the amount won. It's ironic the poker sites that were shut down in 2011 by the Department of Justice tracked play if a player wanted it.
RedStang

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Jul 10, 2012, 1:02 am

They will probably make sure you CC matches your address. BTW Dover is the best place to see a race.
Lucky Loser

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Jul 10, 2012, 1:55 pm

Quote: Originally posted by Stack47 on Jul 10, 2012
You'll get a W-2G playing online too and if the lotteries are set up like the horse racing books, the yearly play is tracked and players can use it to deduct any losses up to the amount won. It's ironic the poker sites that were shut down in 2011 by the Department of Justice tracked play if a player wanted it.

Yep, I can see that you know how the online deals work here. As long as a player keeps their winnings on point in terms of taxes, win or lose, they'll be just fine. I've mentioned before on how a friend of mine regularly sends the IRS a check out of the blue for "damage control" purposes and has been doing so for years now. There's absolutely nothing to hide with online venues so long as a player correctly codes their payments to the IRS. The government knows about all the online deals and the one's that aren't shut down are left alone for very good reasons. They're set up and operated properly, they're transparent, and they treat their players very well i.e. customer service/payouts.

From what I can see, the states are trying to implement theirs versions of "online gambling", but it still won't be the same as what we know as "online gamling". The difference is the multitude of games offered, and most of all, the odds of winning frequently which are much, much better with true online games. Don't get me wrong, I'm all for the states making money for education, city maintenance, etc etc. But, it's time they figure out how to give a little more back to the players through better odds. This is the reason more people have went online along with convenience and variety.

Oh, well.

L.L.
Stack47

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Jul 10, 2012, 4:40 pm

Quote: Originally posted by Lucky Loser on Jul 10, 2012
Yep, I can see that you know how the online deals work here. As long as a player keeps their winnings on point in terms of taxes, win or lose, they'll be just fine. I've mentioned before on how a friend of mine regularly sends the IRS a check out of the blue for "damage control" purposes and has been doing so for years now. There's absolutely nothing to hide with online venues so long as a player correctly codes their payments to the IRS. The government knows about all the online deals and the one's that aren't shut down are left alone for very good reasons. They're set up and operated properly, they're transparent, and they treat their players very well i.e. customer service/payouts.

From what I can see, the states are trying to implement theirs versions of "online gambling", but it still won't be the same as what we know as "online gamling". The difference is the multitude of games offered, and most of all, the odds of winning frequently which are much, much better with true online games. Don't get me wrong, I'm all for the states making money for education, city maintenance, etc etc. But, it's time they figure out how to give a little more back to the players through better odds. This is the reason more people have went online along with convenience and variety.

Oh, well.

L.L.

It depends on how much each state depends on lottery revenue. Some use their lottery revenues for scholarships and actually blame the lottery when revenues fall short. Some of them payout less than 60% on all their games and if they expect the same figure from onling games, they won't get many players.

If the 4 minute Keno payoffs are any indication of what the online games payoffs will be, I can't see how it could be fun playing. A 1 spot pays $3 in Nevada and $2 in Ohio. A 2 spot is $12 to $11, a 3 spot $42 to $27, and a 4 spot is $125 to $72. West Virginia pays $2, $10, $25, and $50 and Michigan pays the same as Ohio.

I knew people that played online Bingo before the Unlawful Internet Gambling Enforcement Act that just chatted while playing a nickle a card. They probably lost money but only a couple bucks for a couple of hours of enjoyment.
d1nnl2

CHERRY HILL, NJ
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Jul 10, 2012, 4:50 pm

I dont think online gaming will take off in the US until Congress undoes the bill blocking credit cards from taking payments or paying winnings which it did later in the Clinton years. I remember during the early days of the internet, I actually won in an online slots and got paid back via credit card.

Delaware is just pushing the other states to act. But it eventually needs the Congress for it to go through. In the future, it will be across state lines with everyone able to participate in multiple lotteries which I believe will open the doors for the hedge fund industry to devise schemes to beat the lottery. The lottery returns 60% of its receipts back to players. That will be very attractive to them.

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