Video Game / eSports Video Site Gets High Score from Amazon

Pithy headline aside, the amount of money Amazon is paying for Twitch.tv is ginormous - like to the tune of $970 million IN CASH.  Definitely a high score!  The site is a live streaming site, where users can watch uploaded videos of people playing video games.  Users can upload their game videos, to include commentary, as well as create "programming" in the form of scheduled live podcasts and/or content.

A huge score for Twitch and again shows indirectly the value of eSports as well as documenting the shift from traditional broadcast content toward user-generated, web- and mobile-delivered content.  The Business Insider story reports that in February, Twitch was fourth in peak internet traffic, behind Netflix, Google and Apple.

For more on this story, see the Business Insider article here.

Atlantic City "Bust" For Revel Casino

You know your property isn't that attractive when you can't attract buyers at fire sale prices. That's what happened last week when Atlantic City's Revel Casino didn't attract any qualified bidders at its bankruptcy auction.  Bad bad news.  According to Caesars Entertainment's CEO, not attracting a bidder, "suggests that even at a de minimis price, people are finding it hard to imaging they can make money operating the Revel." That about sums it up for the Revel and likely for a good portion of the current crop of Atlantic City casinos.  As stated in previous posts, here and here, Atlantic City is in big trouble.

As a result, the Revel is scheduled to shut its doors on September 10th.  Stories on this topic can be found here and here.  RIP Revel, it was nice to know you...

Idiot Politician Thinks Internet Gambling a Bigger Issue Than Securing US Border

The Sacramento Bee reports that Senator Dianne Fienstein (from San Francisco), wrote Attorney General Eric Holder, asking him to support a bill to ban online gambling.  This is the same politician that thinks the Second Amendment should be stripped away, so your right to keep and bear arms would be removed, although she would still be able to keep hers. 

Somehow in her weird view of the world, internet gambling is a huge threat to the US, but all those hundreds of thousands of invaders streaming in to the southern US, with their gang members and diseases aren't.

What is wrong with these people?  Oh, that's right, she's from San Francisco.  Never mind. 

California - truly the land of fruits and nuts...

Atlantic City Casinos Biting the Dust

It appears the Atlantic City gambling establishment is reacting to Governor Christie's warning to shape up quickly.  As was predicted in an earlier post, how Atlantic City will deal with this warning is to retrench and close up some properties.  That is now happening.  The Atlantic Club casino closed in January and the Showboat casino will close in August.  It is reported that the Trump Plaza casino will close in September.  If the Revel casino can't find a buyer to rescue it and it closes, that would leave Atlantic City with just two-thirds of the major casino properties it started the year with.  Losing one-third in two-thirds of a year is a huge hit to the Atlantic City economy.

To save Atlantic City, a game changer is needed immediately.  Sports betting may be that game changer.  Now the raw revenues from sports betting will not be sufficient, but the fact that something new and unique to Atlantic City is in play will help draw casino patrons from competing jurisdictions like New York, Massachusetts and Pennsylvania.  It also helps New Jersey compete with sports betting that is currently underway in Delaware.

Can casino gaming in Atlantic City survive?  Time will tell.

Next Volley in New Jersey Sports Betting Fight

NorthJersey.com reports that State Senator Ray Lesniak is preparing a bill to allow the private operation of sports betting at the state's racetracks and casinos.  You may think such a bill is already in place and that's what the fight is over.  Well, you're correct.  But this one will be a bit different.

As part of the legal fight, the US Justice Department is claiming that they are not forbidding New Jersey from sports betting, just that there can't be any state regulation of sports betting.  So what the DOJ is saying is that either you can't have any sports betting or if you do, it has to be totally unregulated.  Senator Lesniak plans to call the DOJ's bluff.  If this passes, unfettered sports betting will be authorized in New Jersey and will force the DOJ to admit they were disingenuous with regard to their previous legal positions before the courts, or that they'll have to shut up and let sports betting move forward in states other than their grandfathered favorites, particularly Nevada.

Now it is possible if the Supreme Court takes up the recent New Jersey challenge, this bill might be held up until that appeal is settled.  If the Court doesn't grant review, then I see this bill moving forward quickly to again force a legal showdown with the DOJ

The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer. - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer. - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

Other posts on this topic can be found here, here, and here.

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - threatening to call the bluff of the federal government regarding sports betting, .
Lesniak spearheaded legalization of online gaming in the state as well as its challenge of a federal law now negating the state’s sports betting law. He said he will move forward on the bill in the Legislature should the U.S. Supreme Court decline to hear the state’s case next month.
“Right now, book your hotel room [in Atlantic City]] for the Super Bowl next year and the NCAA Final Four, because you won’t be able to get one,” Lesniak declared. “We are going to have sports betting in New Jersey next year. Go to the bank on it, because if the [Supreme Court takes the case], it will be overturned.
“And if it isn’t, it’s the position of the Justice Department in their briefs that they are not stopping states,” but telling those states they’re free to stop preventing such betting without officially sponsoring it, he added. “I have legislation being drafted, and that will be introduced, to allow casinos and racetracks to have sports betting on our premises. We just won’t be able to regulate it. We pushed the envelope with internet gaming, and we will push the envelope on sports betting. And we are not going to be deterred.”
The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer.
The federal government and the NCAA, the NFL, and three other professional sports leagues last year prevailed at the U.S. District Court and Third Circuit Court of Appeals levels. That has led Governor Christie to make a final appeal for the U.S. Supreme Court to hear the case — a decision that likely would be made next month.
But Lesniak’s bill would keep the issue on the front-burner even if the nation’s highest court declines to hear the case.
At the Third Circuit court in Philadelphia last June, U.S. Attorney Paul Fishman argued the federal government’s case. Fishman, stressing the point that the PASPA law is not an example of prohibited “commandeering” of state conduct, noted that New Jersey officials could, if they chose to, announce that the state would no longer enforce its sports betting laws.
“It would be a really, really bad idea,” Fishman said, but it would not be prohibited by the 1992 sports betting law that allows only Nevada and three other states to offer sports betting.
The Department of Justice’s most recent filing contends that even if the court questioned the federal law’s prohibition against sports betting, that law also prohibits private operators from offering such gambling. The state has countered that if the main provision is not legitimate, the entire law may need to be struck down.
Meanwhile, New Jersey’s somewhat uneven results for online gaming since it was legalized last November was defended by numerous industry experts.
Richard Schuetz, chairman of the Caifornia Gambling Control Commission, said that criticism of the state’s results was like parents complaining that their 5-month-old baby “doesn’t speak any languages.”
Gaming law attorney Jeff Ifrah later continued the theme: “This baby is walking and talking, and is going be doing that very well for the rest of its life.”
Borgata CEO Tom Ballance said that New Jersey’s nine-month journey from legalization to going live with online gaming is “like trying to paint an airplane while it’s flying.”
State Division of Gaming Enforcement Director David Rebuck said: “Internet gaming exists in all 50 states. It’s just unregulated” in 47 of them, with only New Jersey, Nevada and Delaware offering a legal version of the betting.
- See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - threatening to call the bluff of the federal government regarding sports betting, .
Lesniak spearheaded legalization of online gaming in the state as well as its challenge of a federal law now negating the state’s sports betting law. He said he will move forward on the bill in the Legislature should the U.S. Supreme Court decline to hear the state’s case next month.
“Right now, book your hotel room [in Atlantic City]] for the Super Bowl next year and the NCAA Final Four, because you won’t be able to get one,” Lesniak declared. “We are going to have sports betting in New Jersey next year. Go to the bank on it, because if the [Supreme Court takes the case], it will be overturned.
“And if it isn’t, it’s the position of the Justice Department in their briefs that they are not stopping states,” but telling those states they’re free to stop preventing such betting without officially sponsoring it, he added. “I have legislation being drafted, and that will be introduced, to allow casinos and racetracks to have sports betting on our premises. We just won’t be able to regulate it. We pushed the envelope with internet gaming, and we will push the envelope on sports betting. And we are not going to be deterred.”
The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer.
The federal government and the NCAA, the NFL, and three other professional sports leagues last year prevailed at the U.S. District Court and Third Circuit Court of Appeals levels. That has led Governor Christie to make a final appeal for the U.S. Supreme Court to hear the case — a decision that likely would be made next month.
But Lesniak’s bill would keep the issue on the front-burner even if the nation’s highest court declines to hear the case.
At the Third Circuit court in Philadelphia last June, U.S. Attorney Paul Fishman argued the federal government’s case. Fishman, stressing the point that the PASPA law is not an example of prohibited “commandeering” of state conduct, noted that New Jersey officials could, if they chose to, announce that the state would no longer enforce its sports betting laws.
“It would be a really, really bad idea,” Fishman said, but it would not be prohibited by the 1992 sports betting law that allows only Nevada and three other states to offer sports betting.
The Department of Justice’s most recent filing contends that even if the court questioned the federal law’s prohibition against sports betting, that law also prohibits private operators from offering such gambling. The state has countered that if the main provision is not legitimate, the entire law may need to be struck down.
Meanwhile, New Jersey’s somewhat uneven results for online gaming since it was legalized last November was defended by numerous industry experts.
Richard Schuetz, chairman of the Caifornia Gambling Control Commission, said that criticism of the state’s results was like parents complaining that their 5-month-old baby “doesn’t speak any languages.”
Gaming law attorney Jeff Ifrah later continued the theme: “This baby is walking and talking, and is going be doing that very well for the rest of its life.”
Borgata CEO Tom Ballance said that New Jersey’s nine-month journey from legalization to going live with online gaming is “like trying to paint an airplane while it’s flying.”
State Division of Gaming Enforcement Director David Rebuck said: “Internet gaming exists in all 50 states. It’s just unregulated” in 47 of them, with only New Jersey, Nevada and Delaware offering a legal version of the betting.
- See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - threatening to call the bluff of the federal government regarding sports betting, .
Lesniak spearheaded legalization of online gaming in the state as well as its challenge of a federal law now negating the state’s sports betting law. He said he will move forward on the bill in the Legislature should the U.S. Supreme Court decline to hear the state’s case next month.
“Right now, book your hotel room [in Atlantic City]] for the Super Bowl next year and the NCAA Final Four, because you won’t be able to get one,” Lesniak declared. “We are going to have sports betting in New Jersey next year. Go to the bank on it, because if the [Supreme Court takes the case], it will be overturned.
“And if it isn’t, it’s the position of the Justice Department in their briefs that they are not stopping states,” but telling those states they’re free to stop preventing such betting without officially sponsoring it, he added. “I have legislation being drafted, and that will be introduced, to allow casinos and racetracks to have sports betting on our premises. We just won’t be able to regulate it. We pushed the envelope with internet gaming, and we will push the envelope on sports betting. And we are not going to be deterred.”
The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer.
The federal government and the NCAA, the NFL, and three other professional sports leagues last year prevailed at the U.S. District Court and Third Circuit Court of Appeals levels. That has led Governor Christie to make a final appeal for the U.S. Supreme Court to hear the case — a decision that likely would be made next month.
But Lesniak’s bill would keep the issue on the front-burner even if the nation’s highest court declines to hear the case.
At the Third Circuit court in Philadelphia last June, U.S. Attorney Paul Fishman argued the federal government’s case. Fishman, stressing the point that the PASPA law is not an example of prohibited “commandeering” of state conduct, noted that New Jersey officials could, if they chose to, announce that the state would no longer enforce its sports betting laws.
“It would be a really, really bad idea,” Fishman said, but it would not be prohibited by the 1992 sports betting law that allows only Nevada and three other states to offer sports betting.
The Department of Justice’s most recent filing contends that even if the court questioned the federal law’s prohibition against sports betting, that law also prohibits private operators from offering such gambling. The state has countered that if the main provision is not legitimate, the entire law may need to be struck down.
Meanwhile, New Jersey’s somewhat uneven results for online gaming since it was legalized last November was defended by numerous industry experts.
Richard Schuetz, chairman of the Caifornia Gambling Control Commission, said that criticism of the state’s results was like parents complaining that their 5-month-old baby “doesn’t speak any languages.”
Gaming law attorney Jeff Ifrah later continued the theme: “This baby is walking and talking, and is going be doing that very well for the rest of its life.”
Borgata CEO Tom Ballance said that New Jersey’s nine-month journey from legalization to going live with online gaming is “like trying to paint an airplane while it’s flying.”
State Division of Gaming Enforcement Director David Rebuck said: “Internet gaming exists in all 50 states. It’s just unregulated” in 47 of them, with only New Jersey, Nevada and Delaware offering a legal version of the betting.
- See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

tate Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - threatening to call the bluff of the federal government regarding sports betting, .
Lesniak spearheaded legalization of online gaming in the state as well as its challenge of a federal law now negating the state’s sports betting law. He said he will move forward on the bill in the Legislature should the U.S. Supreme Court decline to hear the state’s case next month.
“Right now, book your hotel room [in Atlantic City]] for the Super Bowl next year and the NCAA Final Four, because you won’t be able to get one,” Lesniak declared. “We are going to have sports betting in New Jersey next year. Go to the bank on it, because if the [Supreme Court takes the case], it will be overturned.
“And if it isn’t, it’s the position of the Justice Department in their briefs that they are not stopping states,” but telling those states they’re free to stop preventing such betting without officially sponsoring it, he added. “I have legislation being drafted, and that will be introduced, to allow casinos and racetracks to have sports betting on our premises. We just won’t be able to regulate it. We pushed the envelope with internet gaming, and we will push the envelope on sports betting. And we are not going to be deterred.”
The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer.
The federal government and the NCAA, the NFL, and three other professional sports leagues last year prevailed at the U.S. District Court and Third Circuit Court of Appeals levels. That has led Governor Christie to make a final appeal for the U.S. Supreme Court to hear the case — a decision that likely would be made next month.
But Lesniak’s bill would keep the issue on the front-burner even if the nation’s highest court declines to hear the case.
At the Third Circuit court in Philadelphia last June, U.S. Attorney Paul Fishman argued the federal government’s case. Fishman, stressing the point that the PASPA law is not an example of prohibited “commandeering” of state conduct, noted that New Jersey officials could, if they chose to, announce that the state would no longer enforce its sports betting laws.
“It would be a really, really bad idea,” Fishman said, but it would not be prohibited by the 1992 sports betting law that allows only Nevada and three other states to offer sports betting.
The Department of Justice’s most recent filing contends that even if the court questioned the federal law’s prohibition against sports betting, that law also prohibits private operators from offering such gambling. The state has countered that if the main provision is not legitimate, the entire law may need to be struck down.
Meanwhile, New Jersey’s somewhat uneven results for online gaming since it was legalized last November was defended by numerous industry experts.
Richard Schuetz, chairman of the Caifornia Gambling Control Commission, said that criticism of the state’s results was like parents complaining that their 5-month-old baby “doesn’t speak any languages.”
Gaming law attorney Jeff Ifrah later continued the theme: “This baby is walking and talking, and is going be doing that very well for the rest of its life.”
Borgata CEO Tom Ballance said that New Jersey’s nine-month journey from legalization to going live with online gaming is “like trying to paint an airplane while it’s flying.”
State Division of Gaming Enforcement Director David Rebuck said: “Internet gaming exists in all 50 states. It’s just unregulated” in 47 of them, with only New Jersey, Nevada and Delaware offering a legal version of the betting.
Email: brennan@northjersey.com  Blog: northjersey.com/brennan

Tags:

  News  |    NJ State News  |    Politics  |    Bergen County, N.J.  |    Passaic County, N.J.  | 

Inside NorthJersey.com

News

Cedar Grove youth lacrosse ...

News

Obama seeks to reframe ...

News

Paterson police investigating ...

News

Train accident kills at least ...

- See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

tate Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - threatening to call the bluff of the federal government regarding sports betting, .
Lesniak spearheaded legalization of online gaming in the state as well as its challenge of a federal law now negating the state’s sports betting law. He said he will move forward on the bill in the Legislature should the U.S. Supreme Court decline to hear the state’s case next month.
“Right now, book your hotel room [in Atlantic City]] for the Super Bowl next year and the NCAA Final Four, because you won’t be able to get one,” Lesniak declared. “We are going to have sports betting in New Jersey next year. Go to the bank on it, because if the [Supreme Court takes the case], it will be overturned.
“And if it isn’t, it’s the position of the Justice Department in their briefs that they are not stopping states,” but telling those states they’re free to stop preventing such betting without officially sponsoring it, he added. “I have legislation being drafted, and that will be introduced, to allow casinos and racetracks to have sports betting on our premises. We just won’t be able to regulate it. We pushed the envelope with internet gaming, and we will push the envelope on sports betting. And we are not going to be deterred.”
The U.S. Department of Justice is defending the legality of the Professional and Amateur Sports Protection Act of 1992 (PASPA) that bars state-sponsored betting in all but four states. Last week it reiterated its contention that the law is not unconstitutional because it merely prevents the sort of state-sponsored sports betting that New Jersey’s current state law is meant to offer.
The federal government and the NCAA, the NFL, and three other professional sports leagues last year prevailed at the U.S. District Court and Third Circuit Court of Appeals levels. That has led Governor Christie to make a final appeal for the U.S. Supreme Court to hear the case — a decision that likely would be made next month.
But Lesniak’s bill would keep the issue on the front-burner even if the nation’s highest court declines to hear the case.
At the Third Circuit court in Philadelphia last June, U.S. Attorney Paul Fishman argued the federal government’s case. Fishman, stressing the point that the PASPA law is not an example of prohibited “commandeering” of state conduct, noted that New Jersey officials could, if they chose to, announce that the state would no longer enforce its sports betting laws.
“It would be a really, really bad idea,” Fishman said, but it would not be prohibited by the 1992 sports betting law that allows only Nevada and three other states to offer sports betting.
The Department of Justice’s most recent filing contends that even if the court questioned the federal law’s prohibition against sports betting, that law also prohibits private operators from offering such gambling. The state has countered that if the main provision is not legitimate, the entire law may need to be struck down.
Meanwhile, New Jersey’s somewhat uneven results for online gaming since it was legalized last November was defended by numerous industry experts.
Richard Schuetz, chairman of the Caifornia Gambling Control Commission, said that criticism of the state’s results was like parents complaining that their 5-month-old baby “doesn’t speak any languages.”
Gaming law attorney Jeff Ifrah later continued the theme: “This baby is walking and talking, and is going be doing that very well for the rest of its life.”
Borgata CEO Tom Ballance said that New Jersey’s nine-month journey from legalization to going live with online gaming is “like trying to paint an airplane while it’s flying.”
State Division of Gaming Enforcement Director David Rebuck said: “Internet gaming exists in all 50 states. It’s just unregulated” in 47 of them, with only New Jersey, Nevada and Delaware offering a legal version of the betting.
Email: brennan@northjersey.com  Blog: northjersey.com/brennan

Tags:

  News  |    NJ State News  |    Politics  |    Bergen County, N.J.  |    Passaic County, N.J.  | 

Inside NorthJersey.com

News

Cedar Grove youth lacrosse ...

News

Obama seeks to reframe ...

News

Paterson police investigating ...

News

Train accident kills at least ...

- See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

State Sen. Ray Lesniak, D-Union, on Monday announced at the East Coast Gaming Conference in Atlantic City that he is preparing a bill to allow for private operation of sports betting at the state’s racetracks and casinos - See more at: http://www.northjersey.com/news/nj-sen-lesniak-to-craft-sports-betting-bill-for-racetracks-casinos-1.1019252#sthash.0QYM6XkZ.X9hgh8DP.dpuf

eSports Taking Next Step Into the Mainstream

Continuing with the eSports topic, Major League Gaming and ESPN have partnered to present an eSports tournament at the upcoming X Games in June.  The tournament will be based on the Call of Duty game and will have a total of eight teams participating.  For the first time, X Games medals will be awarded to MLG professional gamers.   This is just the next step for eSports as they move further up in popularity and further move into the mainstream.  The MLG/ESPN story on this can be found here. 

That's not all the recent good news for eSports.  Bloomberg Business Week has a news item discussing the construction of a 15,000 seat eSports stadium near Macau in China.  According to the article, "Hong Kong developer Lai Fung Holdings plans to build a 15,000-seat stadium so fans can watch gamers play one another in front of them."  The stadium will be a part of a much larger, $2.8 billion gaming theme park planned for Hengquin Island, near to Macau.  Macau rapidly grew into one of the largest gaming destinations in the world in just a few years.  It appears China is looking to be a world leader in this form of gaming as well.  According to Bloomberg, more than 500 million people in China play video games.  Contrast that to the total population of the US, which is barely above 300 million and you get a perspective on just how big gaming is in China. 

Quoting further from the Business Week article, they note that the Activision Call of Duty tournament in March had a $1 million prize purse.  It is apparent eSports is getting big and getting big fast.  Again, keep an eye on eSports.

Intrade Technology Revived as Fantasy Sports Website

A co-founder of the shuttered prediction market website Intrade has licensed that technology and has opened a fantasy sports website.  The New York Times story discloses how the site, Tradesports.com, is now open for public testing. 

Intrade was closed a couple of years back after US regulators accused the site of offering contracts without regulatory approval, forcing the site to withdraw from the US.  Subsequent to that, following an accounting review found irregularities in internal accounts, the site ceased operation and froze customer accounts.  This new site will leverage the trading technology utilized by the prior site.

To attempt to stay within fantasy sports skill game safe harbors, the new site will require players to trade sufficient shares across three or more different contract propositions.  The company will make money by having more money come in via entry fees than what is paid out in prizes, similar to other pay-to-play fantasy sports websites.

Free Market Research Info on eSports Available

I saw this item a couple of months back, but just getting around to commenting on it now.  There is a new sport gaining popularity.  It's not horse racing, auto racing, skateboarding or extreme skiing (although all are nice sports).  What is getting more popular is eSports.  What is eSports?  These are sports where the participants play games on electronic devices, like consoles and computers.  These gamers play games like Call of Duty, StarCraft, etc. competitively.  There are actual leagues for eSports like Major League Gaming and online video sites dedicated to broadcasting eSports content, like Twitch.  I do spend time on both sites, and find both sites entertaining and engaging.

Here's the item.  NEWZOO marketing research has some good info on the eSports market that they're making available for free.  You can find this article at this link.  I won't steal NEWZOO's thunder and repeat the information, but I'll highlight just a couple of data points.

The first is that there are currently over 47 million eSports players and viewers in the US and Western Europe.  For the US alone, it is approximately 28 million.  If you compare that to the current estimate of fantasy sports players in the US of over 33 million, eSports is generally comparable in size.  Fantasy sports is a multi-billion dollar industry, so eSports' popularity is worth noting.

The second is the percentage of female participation.  For fantasy sports participants, approximately 20% are women.  For eSports, over 30% are women.  This is a big difference and a big positive for eSports.  That larger female participation directly impacts the industry size upside.

Keep an eye on the growth of eSports.

What Happens When You Win a Jackpot?

The Southern California Gaming Guide's, www.TheGamingGuide.com, April issue has a neat article describing what happens when a player actually wins a big jackpot.  Before that, what is this publication?  This magazine is geared for the casino player here in Southern California.  It has information on the various local tribal casinos such as: where they are, driving directions, bus pickup locations and schedules, special offers, etc.  It also highlights recent jackpot and other notable prize winners (free cars, etc.).  For the local casino patron, a pretty good place to shop around if you're looking to partake in casino gaming.

In this issue, there's a short article on what happens when you win a big jackpot.  The article describes in more detail, but what happens when a large jackpot is hit boils down to a few things:

1. Is the jackpot legitimate
2. Pay the taxman
3. Pay the player

What happens when a big jackpot is hit is that the machine will alert the casino and slot manufacturer (assuming a wide area progressive) that a jackpot has been won.  At that point, both the player and machine are secured by casino staff.  The machine is put out of service until the slot manufacturer's staff can verify the machine is working normally and that the jackpot result was a normal result, and not the result of an external influence.

At the same time, the player needs to wait.  But the casino will treat the player right and typically have them relax in the VIP area (as of course the player IS a VIP since they've won a big jackpot)!  They might be offered a room and other perks, but at minimum, they'll be lounging in a great spot, and will be eating some great food while awaiting verification of the jackpot.

When that is complete, its paytime!  Well, not for the player, but for the taxman.  You see, taxman wants their money (or at least know who you are and how much you have won so they know how much they'll be getting).  Depending on the jurisdiction, withholding amounts can vary.  The casino will have the player provide identification and fill out tax forms.  After that, and if there is any withholding, then the player will be given a choice to take the payout in a lump sum, or in installments.  Depending on the choice, that will impact the amount of withholding and timing of the payout.

What isn't mentioned in the article, but also another step would be the celebratory pictures and things like that, which again goes right back to the fun and excitement of winning.  The casino wants to trumpet big winners and of course the player wants to have that picture of them with their winning machine and a big cardboard check showing one and all how much they've won!  Woo Hoo!

New Legal Brief Supports New Jersey Sports Betting

The libertarian Cato Institute and the Pacific Legal Foundation have filed an amicus brief in support of New Jersey's appeal to the US Supreme Court over its desire to offer legal sports betting within the state.  This is an interesting development as this brief is being done by third parties, with no direct stake in the matter.

It is unknown how much weight this will bear on the case, but for a well-regarded think tank to step into a case like this must be welcomed by pro-sports betting interests.

The story on this development can be found here.

Nevada and Delaware Interstate Poker Agreement not Enough

Nevada and Delaware signed on online poker compact last week.  This compact (read: agreement) means that residents of these states can play online poker against each other.  So, online poker operators in both of these states can accept players from either state.  The USA Today story on this agreement can be found here. 

This is a good thing, but it really isn't sufficient to make Nevada or Delaware online poker a big money maker.  Why?  Because the populations of these states are just too small.  Nevada has approximately 2.75 million people and Delaware has approximately 917,000 people.  This is barely 1% of the 316 million people in the USA.  For Nevada and Delaware to really get critical mass, they need to have deals with more states.  I don't see that happening.  If I was a governor of a larger state, I wouldn't necessarily compact with Delaware or Nevada because I won't get as much value from them as they get from me.

If you take the population of Nevada (rank 35 of 50) and add the populations of every state that is smaller, which includes Delaware (rank 45 of 50), you barely break 20 million.  Now 20 million isn't necessarily bad, but you have to have those 15 states working together and agreeing on the deal to get to an aggregate 20 million population.  To put that into perspective, that number is just slightly larger than the population of Florida (rank 4 of 50), which has a population of approximately 19.5 million.

Nevada and Delaware have to somehow get agreements with larger states to feed off of their larger populations before the larger states get wise.  I don't think that will happen.  I foresee something different. I predict that the four largest states will eventually work together and craft a compact just among themselves.  Those states are California (38.3 million), Texas (26.5 million), New York (19.6 million) and Florida (19.5 million).  Add that up and you have approximately 104 million, almost one-third of the entire US population.  THAT is a good number and you only need four states to work together.

Illinois and Pennsylvania are both a bit above 12 million in population, but that is a big drop from over 19 million.  If I were those four states, I would just work together and perhaps add Illinois and Pennsylvania, which would put the total size of the "Big 6" network at just under 130 million.  This is a large enough number that would be sufficient to have a good population of online poker players.  Then, that group could then cut deals with other countries.

With online poker, size DOES matter.  California, Texas, New York and Florida have it - Nevada and Delaware don't.

Nevada Gambling Hypocrisy On Parade

Here are a couple of recent stories that highlight the hypocrisy that arises when you deal with an industry that has a strong regulatory component.  These stories are in addition to my recent post regarding casino heavy hitters fighting each other over expanded gambling, which you can see here. 

The first story details the news that Nevada's senators (one Democrat, one Republican) are teaming up to introduce a bill to outlaw all online gambling in the US except for poker.  Why?  Because they are trying to stop the "wild West" of gambling.  You see, yes they are doing this to protect their Nevada casinos, but you shouldn't only think of their more noble motives of protecting YOU from evil gambling.  As you of course may realize, Nevada only offers good and pure gambling...so that's OK and should be protected.

This bill is going to be bi-partisan because, let's be clear, the Democrat, Harry Reid, isn't very popular among Republicans, which is probably an understatement.  He needs his fellow Nevada senator, a Republican, to help weasel this bill through.  Of course, the bill would also have to get through the House of Representatives, but one step at a time.

My view is that this bill shouldn't get through the Senate, but it indeed may.  When?  After the November elections during Congress' lame duck session.  This bill will be inserted into another bill that due to its content would be deemed a "must pass" bill.  Think of something like a bill to authorize the budget for the armed forces, or removing a tax impediment for disabled elderly people.  No one will stop those bills, so Harry Reid as Senate Majority Leader will add this bill to that one and force people to vote for this or they will be viewed as hating old people, the military, etc.  Watch for the news on this bill to go very quiet until after the election, then watch these lame duck bills come up in November and December.  The article on this bill can be found here.

Now, where's the hypocrisy?  Well the Nevada view that their gambling is good and everyone else's is bad is hypocritical, but let's add in the other story to buttress the hypocrisy.  This story discusses how Nevada regulators are allowing slot players to use prepaid access cards.  Now similar means are used for sportsbook and poker players, but doing this with slots isn't exactly the same.  It would take some time for a sportsbook player to place their wagers, similar with a player in a poker game.  Slot machines are fast.  You can get a new spin about every 6 seconds if you're fast enough.  Also, sports betting and poker have a skill component, where a slot machine does not.

Here's a quote from the article:

"Here’s how it would work: A player who wants to use an access card in a slot machine would first have to register at a casino with identification that verifies a player’s address and date of birth. Registration would also tie a player to a casino’s loyalty card. Players could then load the cards at their banks by transferring funds from a checking or savings account.  Harry Hagerty, president and chief financial officer of Sightline, said his company’s agreement with banks puts limitations on the amount of money that a player could load to an access card — a maximum of $2,000 a day, $4,500 a week and $10,000 a month, and the most a player could put on a card at any time is $25,000.  Regulators also said a player wouldn’t be able to use the card for at least 15 minutes after transferring the funds."

Wow, very responsible of Nevada to make sure the maximum on a card is $25,000 and they have a whole FIFTEEN MINUTE cooling off period. (sarcasm alert)

Here's the Nevada hypocrisy.  One the one hand, they want to make it easier for people to spend their money on slot machines, ahem, THEIR slot machines, which they must think is a good thing.  On the other hand, they are seeking to pass a federal law to outlaw online slot machines, because those are generally not Nevada slot machines, which of course must be assumed to be bad.

So, in essence, NO NO NO don't put your money in those non-Nevada slot machines because they are bad and evil because they are electronic and online and you could go through your money very fast.  Put your money in our slot machines because we're pure and decent and we limit the money you have on your prepaid card to $25,000 dollars!  Right, I stand corrected thinking about this...no hypocrisy here!  (sarcasm alert)

Big Money Heavyweights Fight Over Gambling

Fighting over gambling usually isn't about gambling, it's about who gets the money from gambling.  There are a couple of recent news articles that highlight this fact very well.  The first is an article about a couple of casino heavyweights (Genting and Las Vegas Sands) fighting for expanded gambling in Florida.  That article can be found here.  Now, the opposite side is Disney, which although not exactly pro-gambling, is pro-theme park and wanting to maintain their stronghold without new competition for tourism and convention dollars from additional casino gambling venues.  This no doubt is a money fight.  The argument isn't really if gambling is good or bad as Florida does allow casino gambling (eight Indian casinos are authorized).  However, a study did purport to state that new full-service casino resorts would generate an additional $1.5 billion in spending.  You know who is really winning in this fight?  Politicians and lobbyists.  Money is coming into the political fight big time.  The saying goes, "money is the mother's milk of politics" and milk is surely flowing into Florida's gambling expansion battle.  Note that Las Vegas Sands, controlled by Sheldon Adelson, is on the pro-gambling side in Florida.

Now the same Sheldon Adelson is backing the front group Coalition to Stop Internet Gambling, which is attempting to get Washington DC politicians to stop internet gambling.  So fight for gambling in Florida, but fight against gambling in Washington DC.  I'm confused...

Now, this coalition is being opposed by the Coalition for Consumer and Online Protection, backed by MGM Resorts and the American Gaming Association.  The story on that development can be found here.  Isn't it interesting that these players construct these proxies with names that sound good, but aren't really what they are about?  What if these industry heavyweights named their front groups in a way more in line with their objectives?  What if you had groups named Group that Opposes My Competitors From Making Money That I Can't Capture Because I Didn't Grasp the Market Opportunity or Group that Opposes Anything that Might be Good for that Guy Because Perhaps I Don't Like Him and it's Personal?  Wouldn't that be refreshing?

Again, lobbyists and politicians are loving it as the money is coming in!  Do you think this fight will be over soon?  As long as the money is coming in, the politicians and lobbyists really don't have an incentive to see this issue get resolved.  Stay tuned.

Proof Fantasy Sports Players are Dedicated (Or Crazy)

There are over 35 million fantasy sports players in the US and Canada.  Fantasy sports is a multi-billion dollar business with no signs of decreasing popularity.  Every major sports league actively supports and/or sponsors their own fantasy sports games.

However, some fantasy sports players are truly in a league by themselves.  One particular fantasy league was featured on NBC's Tonight Show.  The person who ends up in last place actually has to get a tattoo (a permanent one) of a design chosen by the person who wins the league.

Check out these Tonight Show clips and see for yourself! (Clips courtesy and credit to NBC.com)

Part 1


Part 2

Analyst Reports Modest I-Gaming Revenue for USA

Contrary to some of the larger estimates of I-Gaming revenue in the US, an analyst has put forward some more modest numbers.  The story reported here, states that internet gaming will only generate $1.9 billion in revenue by 2020, not the $7 to $12 billion in revenue estimated by others.  You can click the hyperlink above to find out who was estimating the higher numbers.

This lower estimate by Eilers Research makes some points that I personally agree with, which helps buttress the more modest projections.  The main assumption for the lower estimates is the assumption that if the states do authorize online gaming, it will be poker only.  Now, it is almost a certainty that the first online gaming activity authorized would be poker, with other casino games being added later.  But I agree with the analyst that poker might only be the ONLY online gambling activity authorized.

If that indeed is what happens, all is not lost.  Poker would be authorized online, and operators can add casino games in a social gaming/subscription mode.  Social casino game play in the US can be a generator of revenue - see the activities of all the major slot vendors, particularly IGT's DoubleDown Casino on Facebook.

One assumption that is made by Eilers Research that I am not in total agreement with is that I-Gaming will not cannibalize the land-based casinos.  I will agree if only poker is authorized and other casino gaming will be of the social gaming kind.  Of course, online poker to an extent will cannibalize land-based card rooms.  If full-blown casino gaming is allowed by a state, that will cannibalize some of the casino business.