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Monday, May 21, 2012

Rolling the dice

Ohio considers Internet gambling

By Ryan Hoffman  |  Published: 01/19/12 12:10am  |  Updated: 01/22/12 11:34pm  |  1 comment


by LAURENCE KESTERSON |

Penn senior Ari Paul plays three poker hands simultaneously in his dormitory room. Last summer, he said, he would routinely log on to online poker “rooms” with $3,000 and stay 12 hours. This year, he has cut back because of his school load. (Laurence Kesterson/Philadelphia Inquirer/KRT)


Internet gambling might be coming to the Buckeye State just three years after Ohio voters approved a ballot issue approving casino construction and operation in Ohio.

“At this time, we’re researching the Department of Justice’s opinion on Internet gambling and the potential for Internet gambling in Ohio,” said Danielle Frizzi-Babb, communications director for the Ohio Lottery. “Ultimately, this is a policy decision that we will need to consider with our administration.”

The Department of Justice’s opinion that Frizzi-Babb referred to is the recent reversal of interpretations of the federal Wire Act of 1961, which had previously banned interstate gambling over phone lines and any form of gambling over the Internet.

“Due to the nature of the Internet, every type of communication constituted interstate commerce, so they applied [the ban] to all bets, regardless of whether they went to another state or not,” said Anthony Cabot, an expert in gaming law and a partner at Lewis and Roca LLP Lawyers in Las Vegas.

The change in the interpretation of the Wire Act now allows each state to determine whether they want to adopt laws prohibiting or protecting online gambling, Cabot said.

It’s unclear at this point just what kind of internet gambling could potentially come to Ohio.

New Jersey is considering legislation that would allow all of their casinos to offer online gambling including poker, blackjack and other casino games. California and Iowa are considering online poker while New York and Illinois are in the process of making lottery tickets purchasable online.

In Ohio, it will be interesting to see what kind of effect online gambling would have — if approved — on the new casinos being built in Cincinnati and Cleveland.

Rock Gaming LLC, the Midwest-based gaming partnership developing the two casinos, didn’t respond to a media inquiry.

“We don’t know if the proliferation of online gaming will increase, decrease or not affect casino patronage — it’s just not a known factor at this point,” said Cabot, whose home state of Nevada has already authorized all forms of online gambling.

If the Ohio Lottery Commission were to adopt online gambling, it could provide the commission with increased profits. All lottery profits are distributed to the Lottery Profits Education Fund, a fund that supports education in Ohio. Last year, the commission contributed $738.8 million to the fund, Frizzi-Babb said.

The office of Gov. John Kasich continues to review this issue and has nothing to announce at this time, said Connie Wehrkamp, Kasich’s deputy press secretary.

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