Online gambling crackdown driving players to other websites

A woman who wants to remain anonymous plays poker online.

Last month’s federal indictment of the three biggest online poker websites in the United States has resulted in double-digit increases in traffic at smaller poker sites that continue to run afoul of the Justice Department — a sign, online gambling experts say, that federal prohibition won’t stop people from playing online.

“Prohibition is not regulation,” said I. Nelson Rose, an industry consultant and gambling law professor at Whittier Law School in California. “We’ve got a vacuum that will be filled by operators that are completely based overseas.”

The effect was immediate, as companies such as Merge Network, Bodog and Cake Network attracted players within days of federal authorities halting poker play on PokerStars, Full Tilt Poker and Absolute Poker on April 15, according to industry experts and PokerScout.com, which tracks online poker activity.

Merge Network’s online traffic rose 77 percent in the three weeks after the indictment of its competitors, according to PokerScout.com.

The potential local effect is less definitive. Las Vegas casinos saw an unprecedented bump in poker play as online poker rooms became prime training grounds for televised poker tournaments with big prize pools. But major casinos have capitalized on the increased attention by hosting more poker tournaments, including high-profile events that draw both seasoned professionals accustomed to live play and amateurs who got their start online.

Bellagio’s poker room hasn’t seen an immediate uptick business as a result of the federal crackdown some are calling “Black Friday”.

Many customers have to plan trips to Las Vegas, said Doug Dalton, Bellagio’s director of poker operations.

“People have to plan vacations to come here,” he said. “Online, you can just go to your living room, bedroom or office to play.”

Dalton said he expects business to grow in the wake of the indictments.

“People who like to gamble are going to gamble. And if they can’t do it online, it stands to reason that they will find other places to gamble,” Dalton said. “Not many places embrace big money games and have the amenities to take care of those customers. As we continue our advertising of (poker) events we will probably get more response.”

Bellagio offers some of the highest poker limits in the world, as set by players. Games in the high limit salon could cost tens of thousands to enter and thousands more per hand to play.

That’s why Dalton and others in Las Vegas breathed a sigh of relief when the Justice Department allowed the indicted websites to refund player money tied up in online accounts, Dalton said.

“If anyone was short (on funds), at least they will have a bankroll to play with,” Dalton said. The Bellagio will host the World Poker Tour World Championship starting this weekend. The tournament will include a high roller event with a $100,000 buy-in — a WPT record. “We’re going to find out who can afford to play,” Dalton said.

Not that Dalton — or any other casino executive in town — knows where players are getting their money.

“That’s something I really don’t ask our customers,” he said.

Gaming

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