South Point owner Gaughan in favor of online poker
Proponents of a bill to legalize Internet poker in Nevada picked up a high-profile backer Tuesday — South Point owner Michael Gaughan.
Gaughan broke ranks from others on the Strip and became the first well-known Nevada gaming executive to voice his support for passage of Assembly Bill 258, which would allow the Nevada Gaming Commission to adopt regulations for Internet poker.
“There is no doubt in my mind that online poker and other games are coming,” Gaughan said in a statement released by the South Point. “AB 258 would make us a pioneer in the nationwide movement and the leader for the rest of the country to emulate.”
Gaughan said passage of the bill could help the state’s budget shortfall and go toward reducing Nevada’s unemployment rate. He thought online poker could infuse more than $500 million into the state budget.
Gaughan thought the Nevada Gaming Commission had the ability to regulate and license online gaming, using the technology to ensure the games’ fairness and integrity.
Gaughan’s support comes ahead of a hearing on the bill by the Assembly Judiciary Committee on Thursday morning.
Assemblyman William Horne, D-Las Vegas, who is chairman of the committee, introduced the bill on March 10. It is backed by Internet gaming giant PokerStars.
“This legislation will create high-tech jobs, bring in revenue to state and local government, and will be a significant boost to our economy at a time when it is desperately needed,” Horne said.
Gaughan, 67, is considered one of the casino industry’s pioneers, having built the Coast Casinos brand before selling the chain of hotel-casinos to Boyd Gaming Corp. for $1.3 billion in July 2003.
He reacquired the South Point from Boyd in October 2006 when he exchanged his stock in the company for the hotel-casino in a deal valued at $512 million. Recent expansions have given the property, located on the far southern end of the Strip, 2,163 rooms.
Gaughan also markets the South Point to a locals audience, which backers of the Internet poker bill believe would be the primary market for the activity.
Gaughan’s support comes after representatives of the state’s two largest gaming companies, MGM Resorts International and Caesars Entertainment, voiced opposition to AB 258.
Both companies said they favor federal legislation to legalize Internet gaming.
“This is not a bill that we support,” Caesars’ Senior Vice President of Communications and Public Relations Jan Jones said in statement emailed by Caesars Interactive. “Our focus is not intrastate, our focus is interstate. It’s federal, it’s putting together an appropriate regulation and licensing regime and taking the jobs and revenues going to foreign companies and bringing it back to America.”
Last week, a bipartisan bill was introduced in Congress that would establish federal licensing and regulation of online wagering, specifically poker. The bill was co-authored by Rep. John Campbell, R-Calif., and House Financial Services Ranking Member Barney Frank, D-Mass.
Horne’s bill, the assemblyman believes, could benefit the Nevada economy.
“Nevada is the undisputed leader of the live-gaming industry and it only makes sense that it should become the first state to make Internet poker legal,” Horne said. “While we understand the federal government is looking at this issue as well, Nevada can’t wait to see if Congress can finally get it done.”
PokerStars has picked up some high-profile support in its effort to enact Internet poker legislation in Nevada.
Before the start of the current Legislative session, the company hired former Assembly Speaker Richard Perkins as a lobbyist. PokerStars recently hired former Nevada Gaming Control Board member Randall Sayre as a consultant.
Supporters of the bill, including Internet poker experts, are expected to testify about the legislation Thursday.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
