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Two Caesars-owned properties received approval to enter New Jersey’s Internet gambling market Wednesday, a little more than 24 hours away from the start of the state’s testing period. The approvals issued Wednesday mean seven of Atlantic City’s 12 casinos will be prepared to engage in real-money testing today. While five other Atlantic City casinos began receiving necessary permits weeks ago, Caesars was in a unique situation as it sought a casino license for its subsidiary, Caesars Interactive Entertainment. Other properties applied for Internet gambling permits through their land-based operations, which already have casino licenses.
On Wednesday, the New Jersey Casino Control Commission issued a license to Caesars Interactive, a company that launched in 2009 and already offers Internet gambling in Nevada and abroad. Almost simultaneously, the New Jersey Division of Gaming Enforcement issued Internet gambling permits to Bally’s Atlantic City and Caesars Atlantic City. Caesars also owns Harrah’s Resort and Showboat, but only applied for permits for two of its properties.
“I am excited about the opportunity that Internet gaming will create for New Jersey and Atlantic City in particular,” New Jersey Casino Control Commission Chairman Matthew Levinson said before voting to issue the license. “(This) will also put New Jersey in the forefront in the field of Internet gaming and position us to serve as a hub and a model for the future expansion across the nation.”
Wednesday’s hearing in front of the commission lasted just under two hours as attorneys and regulators scrutinized the financial stability of Caesars Interactive as well as the employment history of its CEO, Mitch Garber.
Caesars Entertainment Corp. has been in the national media spotlight since a report was made to the Massachusetts Gaming Commission highlighting four concerns with Caesars Entertainment and the Caesars Interactive subsidiary. Among them was a concern that Garber had previously headed two companies that later entered into non-prosecution agreements tied to illegal Internet gambling in the United States.
Massachusetts never took action on Caesars, but following the report, the company withdrew its proposal for $1 billion casino in East Boston. Wednesday marked Garber’s first public opportunity to address those concerns in front of regulators.
Garber addressed his time at both Optimal Payments, a Canadian payment processing firm that handled Internet gambling transactions, and PartyGaming, an Internet gambling company that later merged into bwin.party. He told regulators that he always believed the companies were acting within the confines of what was legal.
Regarding his time at PartyGaming, he told regulators that if the company had decided it didn’t care about acting legally, it would have started taking sports bets as well. However, Garber said he believed the law was clear that Sports Betting was not permissible while things were not as clear in the realm of Internet gambling.
Garber testified that he believed there was a 50-50 chance Internet gambling would be outlawed in the U.S., and he used that to negotiate a better financial deal for himself during his time with the company.
Optimal and PartyGaming both later entered into a non-prosecution agreement with the U.S. Attorney’s Office, agreeing to pay $19 million and $105 million respectively. Garber said he was the catalyst for those discussions, and while the government was not investigating PartyGaming, the company believed it would be better to get out from “under a cloud,” he said.
New Jersey regulators were satisfied with those responses as Levinson noted that Garber said he believed the companies were acting legally.
SOURCE
On Wednesday, the New Jersey Casino Control Commission issued a license to Caesars Interactive, a company that launched in 2009 and already offers Internet gambling in Nevada and abroad. Almost simultaneously, the New Jersey Division of Gaming Enforcement issued Internet gambling permits to Bally’s Atlantic City and Caesars Atlantic City. Caesars also owns Harrah’s Resort and Showboat, but only applied for permits for two of its properties.
“I am excited about the opportunity that Internet gaming will create for New Jersey and Atlantic City in particular,” New Jersey Casino Control Commission Chairman Matthew Levinson said before voting to issue the license. “(This) will also put New Jersey in the forefront in the field of Internet gaming and position us to serve as a hub and a model for the future expansion across the nation.”
Wednesday’s hearing in front of the commission lasted just under two hours as attorneys and regulators scrutinized the financial stability of Caesars Interactive as well as the employment history of its CEO, Mitch Garber.
Caesars Entertainment Corp. has been in the national media spotlight since a report was made to the Massachusetts Gaming Commission highlighting four concerns with Caesars Entertainment and the Caesars Interactive subsidiary. Among them was a concern that Garber had previously headed two companies that later entered into non-prosecution agreements tied to illegal Internet gambling in the United States.
Massachusetts never took action on Caesars, but following the report, the company withdrew its proposal for $1 billion casino in East Boston. Wednesday marked Garber’s first public opportunity to address those concerns in front of regulators.
Garber addressed his time at both Optimal Payments, a Canadian payment processing firm that handled Internet gambling transactions, and PartyGaming, an Internet gambling company that later merged into bwin.party. He told regulators that he always believed the companies were acting within the confines of what was legal.
Regarding his time at PartyGaming, he told regulators that if the company had decided it didn’t care about acting legally, it would have started taking sports bets as well. However, Garber said he believed the law was clear that Sports Betting was not permissible while things were not as clear in the realm of Internet gambling.
Garber testified that he believed there was a 50-50 chance Internet gambling would be outlawed in the U.S., and he used that to negotiate a better financial deal for himself during his time with the company.
Optimal and PartyGaming both later entered into a non-prosecution agreement with the U.S. Attorney’s Office, agreeing to pay $19 million and $105 million respectively. Garber said he was the catalyst for those discussions, and while the government was not investigating PartyGaming, the company believed it would be better to get out from “under a cloud,” he said.
New Jersey regulators were satisfied with those responses as Levinson noted that Garber said he believed the companies were acting legally.
SOURCE
