At the 2013 iGaming North America conference (iGNA) last week members of the global gaming industry including lawyers, legislators, operators, service providers and members of the gaming media, descended upon Las Vegas to discuss topics important to the industry.
During the conference, a panel of poker players was given the opportunity to communicate the online poker community’s perspective of the gaming industry to industry personnel. The panel was moderated by Marco Valerio, Editor and Promotion Manager at Global Poker Index, and included Matt Kaufman, Editor at PokerStrategy, Collin Moshman, Leader of Team Moshman Staking and Coaching and Daniel Negreanu, Professional Poker Player and member of Team PokerStars.
Views of the online poker community have traditionally not played a large role in the development of the gaming industry, but the organizers at iGNA and Valerio in particular sought to change that. As Valerio noted in his opening remarks, the global online poker community has flourished in spite of opposition by various gaming interests in the US, and in doing so now holds information that is valuable to the very industry that was once its biggest nemesis.
The exchange of that information is valuable to the online poker community as well. With the US online gaming industry in its infancy, there is a real opportunity to impact the direction of the industry and avoid pitfalls that may have otherwise stunted its growth.
Some very good topics were covered by the player panel including the liquidity of games, the use of software, recreational players, player rewards, rake distribution models and some difference between live and online play.
Near the end of the allotted time, someone from the audience posed the following question:
As we’re working on shaping the regulatory and legislative landscape in the US, are there any considerations that you would like us to take into account as we are working on drafting bills and working with governors and legislators: Things that are important to the player community?
Negreanu responded with a warning for legislators not to overly restrict player’s freedoms and encouraged lawmakers to “take a lesson from what’s already worked and what’s already been extremely successful.”
Prudent advice for sure, but there is also a tremendous amount to learn from what hasn’t been so successful. I will briefly touch on what I consider to be four of the biggest concerns from a player’s perspective for online poker in newly regulated markets.
Protection of Funds
Protection of player’s funds tops that list. From Ponzi schemes to the liquidation of gaming companies to unfair confiscation of funds, with few exceptions, players’ money on deposit with online poker sites is at risk even when it’s not at the tables. The self-reporting by operators that has been accepted by regulators in the past is simply not acceptable.
Taxes
Outdated and inequitable tax laws have the potential to trip up online gambling. Look no further than France to see how overreaching tax rates on operators can stifle industry growth and competition. In addition, existing tax laws for both professional and in some states amateur gamblers can have serious consequences for the industry. Imagine a losing recreational player discovering that he/she had to pay taxes on their winning but could not deduct their losses.
Account Security
The amount of money being held in online poker accounts coupled with the frequency those accounts are accessed by their owners creates a need for exemplary account security. Hardware, software and procedural improvements are required to secure player’s funds and the image of the industry as a whole. There have been several occurrences of compromises in this area even on the most trusted sites. Security practices for online gaming sites should be as stringent, if not more stringent than the online security standards for financial institutions. Independent forensic audits and penetration testing should be standard for operators and their systems.
Cheating
Cheating by both operators and players has caused more than a few black eyes for the industry. Stiff criminal penalties are required as a deterrent against players cheating. The only risk currently in place for cheaters is the loss of their account balances. It could be argued that such small penalties actually encourage criminals to try to defraud others. Time and time again it has been shown that operators are either incapable of catching cheaters or are simply unwilling. The elimination of bots, collusion and multi-accounting are essential to the long-term health of the online poker ecology.
