24-Nov-2013
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The Return of Online Gambling to the US Virgin Islands
December 2013 – WOGLR
The expansion of the US market for regulated online gambling continues, although in the case of the US Virgin Islands, the US territory already has legislation to allow internet gaming in the form of its Internet Gambling and Enforcement Act, enacted back in 2002. Frank Catania, President at Catania Gaming Consultants, recounts the path that has led the US Virgin Islands to its current re-entry into online gambling regulation, and explores the implications of this for i-gaming elsewhere in the US as well as the unanswered questions facing the territory.
The United States Virgin Islands (‘USVI’) was the first state or territory to pass legislation authorising internet gaming. In 2002 the USVI enacted the Internet Gambling and Enforcement Act, 32 V.I.C §601, et seq. The legislation was clear that ‘internet gaming shall not commence until the Commission adopted rules and regulations...and has determined that internet gaming systems are secure and reliable, and provide reasonable assurance that players will be of lawful age and communicating from jurisdictions where it is lawful to make such communications.’ On 25 November 2002 the USVI Casino Control Commission (‘CCC’) promulgated and adopted internet gaming rules and regulations. It is important to note that in 2002 the St. Croix, USVI was home to the largest oil refinery in the Western Hemisphere.
The Importance of Liquidity for the US States Offering i-Poker
December 2013 – WOGLR
Following the opening up of three US states for online poker over the past year, attention has fallen not only on the details of each state's regulations, but on how attractive each state's online poker offerings will be to players. In particular for online poker is the issue of liquidity: having enough players online to create an experience that retains customers and profitability. Jeff Ifrah, Editorial Board Member and Griffin Finan both of Ifrah Law examine the benefits of online poker liquidity and how it might be achieved in the US.
For online poker to truly thrive in the United States, online poker operators will need to ensure that they have enough players to create a good experience for the consumer and to make the operation of the room profitable. Three states are now offering live online poker and several more states are certain to consider online gaming legislation in the upcoming year, but the question for the three states already online and the states considering online poker is if they have enough liquidity to support a sustainable online poker room, and if they do not, how can sufficient liquidity be created?